Recently, South Carolina Gov. Mark Sanford vetoed H.3790, a payday loans bill that would have stretched the payment period from two weeks to four months (without changing the fees charged). Furthermore, H.3790 would have eliminated unsecured loans in South Carolina and outlawed the common practice of a customer presenting a lender with a post-dated check. However, S.C. Politics Today reports the South Carolina House of Representatives has overridden Gov. Sanford’s veto. In doing this, they also went against the governor’s veto of the portions of the bill that affected mortgage industry licensing fees.
Resource for this article: South Carolina House overturns veto of pay day loan bill
Mark Sanford was against payday loan-strangling H.3790
Gov. Sanford explained to the state legislature that his payday loans bill veto was warranted because
“Although this type of regulation is intended to protect the public, these kinds of laws ultimately decrease the number and type of available financing options and make it harder for new lenders to enter the market. In other words, consumers have fewer choices and the available options become more expensive. … Some people will benefit from payday–style loans and some will not, and we continue to believe that individual consumers are better equipped than a government bureaucracy to know whether a short-term loan is a wise decision in any given circumstance.”
The public knows what works best for them
It is common knowledge that state legislators are less likely to need a pay day loans or similar loans with no credit check – short term loan or otherwise – than the average credit-constrained consumer, so it is logical that consumers should be allowed to choose for themselves. If Mark Sanford, a man of privilege, can see that, the legislators should be able to as well. As of now, payday loans law in South Carolina allows borrowers one loan at a time, up to $550. Payday loan customer history is maintained in a statewide computer database.
Another bill, an additional overturned veto
Another stinging veto override delves into Gov. Sanford’s alleged history of impropriety with South Carolina tax dollars. S.C. Politics Today reports that the House cancelled out another Sanford veto that would have “allowed details to be made public in a state ethics investigation of the governor when it indicates possible cause that a violation may have occurred”. The vote against Sanford’s veto of the governor investigation bill was a landslide, 102-2 in favor of overturning his veto. Sanford claims he just wanted the bill expanded to include all state lawmakers.
Read a lot more on this topic here
thestatecom.typepad.com/ygatoday/2010/06/house-overrides-sanford-on-payday-lending-ethics.html
docs.google.com/viewer?url=http://www.scgovernor.com/NR/rdonlyres/A0AB7D58-484C-49EC-9DD7-856ED2D5D7C3/35671/H3790MortgageLoanOriginator.pdf
No comments:
Post a Comment