RECENTLY, A CONSUMER advocate told me she didn't understand why lenders opposed a provision requiring mandatory counseling for high-cost loans in an anti-predatory lending bill.

The answer is simple: If a credit counselor points out predatory elements in a proposed loan, the informed borrower is likely to walk away from the deal.

Unscrupulous lenders who make loads of cash by duping poor, elderly and unsophisticated borrowers fear that. They would rather consumers not get sound advice before accepting loans.

These are not the kind of guys you want to do business with. They are rip-off artists.

What they do is not illegal; it's just wrong. Anytime you hoodwink people into taking loans they don't need or accepting higher interest rates than they should or paying excessive fees, that is wrong. Yet, that is what some lenders have been allowed to do in South Carolina.

Most lenders, including those who make subprime loans, operate in the light and aboveboard. However, there is a faction of them who use abusive practices that all too often lead to people losing their homes, cars and jobs.

State lawmakers can put a stop to that by approving a conference committee's recommendation. In addition to requiring mandatory counseling, the legislation limits fees and points for high-cost loans, requires mortgage brokers to work in the best interest of borrowers and prohibits the financing of credit insurance, among other things.

While every provision is needed, mandatory counseling is key. The idea is not for all subprime borrowers to receive counseling. It is to make sure that those who are considering high-cost loans get needed guidance to make sure they are not being cheated or getting into a loan they can't repay.

During one conference committee meeting last week, Rep. Joe Neal said borrowers would make better decisions and be less likely to be taken advantage of if they get counseling. "My position is that counseling is important. It's important because of some of my own constituents who have been victimized by predatory lending," he said. "I think it's a critical piece that has to be there."

However, John Foster of United Credit, who is a member of the S.C. Financial Services Board, said mandatory counseling could hurt his business. He said United's typical customer is someone buying a small home or needing a small loan package in the area of $25,000. "They have a need that we fill the niche," he said. "They've got bad credit."

Mr. Foster said he is for "mandatory consumer education, but not mandatory counseling."

He said he is concerned that HUD has no guidelines for counselors. "I'm a CPA so I believe in certification," Mr. Foster said. He said he envisions "unlicensed, unaudited counselors" providing guidance to borrowers. "If I look scared it's because I am," he said.

Brandolyn Pinkston, interim director of the Department of Consumer Affairs, had a passionate response to Mr. Foster's comment. "I too am scared. I am scared for people who are about to lose their homes," she said.

Ms. Pinkston said mandatory counseling could help some people realize they can get better deals. "There are a number of people who are placed in high-cost loans that should be in prime loans," she said.

There has been some concern as to whether there are enough counselors available to meet the need if mandatory counseling becomes law. However, representatives from the State Housing Authority as well as Consumer Affairs have said there are enough counselors available to cover the state's 46 counties. HUD-certified counselors work in a number of different agencies and would provide free counseling to borrowers, they said. Consumer Affairs would be charged with developing the process.

It is imperative that Consumer Affairs and the Housing Authority make sure a solid network of counselors is in place so consumers do not fall through the cracks.

Also, we must avoid the miscommunication that occurred in Cleveland, where mandatory counseling confused both borrowers and counselors. That was because the HUD-approved counseling agencies and the city's Consumer Affairs Department were not on the same page. Counseling agencies didn't get the help they needed from consumer affairs. As a result, some of them stopped offering the service.

According to one report, a Cleveland borrower went to a mandatory session and instead of being given guidance about the high-cost loan he was entering into, he was taught about good budgeting practices. Not only did he leave confused, but he later found that he had entered into a loan that carried a higher interest rate and higher mortgage payments than he had expected.

If the House and Senate do the right thing and approve this legislation, we'll get mandatory counseling in South Carolina.

The process must not be cumbersome, and counselors must know exactly what is expected of them. They should help borrowers make informed decisions about the loans they are considering. Consumers should understand how the loan works and what their options are.

If the loan is predatory, the No. 1 option must be to walk away.