COLUMBIA, S.C. - Legislators reached a compromise Tuesday on legislation that targets high-interest loans and other controversial lending practices.

The legislation would give consumers protection for first mortgages for the first time since 1982, require mortgage brokers to work in the consumers' interest and define how much can be charged in lending fees before a loan is deemed "high-cost." It would be mandatory for consumers seeking "high-cost" loans to get credit counseling for free.

Members of the conference committee were expected to give final approval to the measure on Wednesday.

Jane Wiley, legislative director for the South Carolina chapter of the American Association of Retired Persons, said she's confident the legislation will protect consumers from predatory lenders.

"Just like a cheetah in the wild, they go after the most vulnerable - the elderly, minorities and low income people," Wiley said.

The legislation says the lender of a high-cost home loan may not finance points and fees of more than 2.5 percent of the total loan.

The legislation defines and outlaws practices, such as "flipping" in which loans are refinanced repeatedly to generate surcharges for lenders, that do less to benefit consumers than they do to enrich loan companies.

The committee decided Tuesday that "flipping" would be defined as refinancing a loan within 42 months without tangible net benefit to the borrower.

In vehicle loans, the legislation would allow the lender to charge interest on loans for six renewals up to 240 days, then the lender would have to freeze the loan to allow the consumer six months to pay.

The legislation also sets a six-year time limit for court action on loans that violate the statute and does not allow class-action lawsuits over lending practices.

Rep. Joe Neal, D-Hopkins, says he's been working on the legislation for nearly ten years, serving on the first joint predatory lending task force and now a member of conference committee.

"It not everything I want, but it's light-years ahead of where we were," he said.

Sue Berkowitz, director of the South Carolina Appleseed Legal Justice Center in Columbia, said the South Carolina legislation is as strong as predatory lending laws in North Carolina, New Jersey and New Mexico. She has been working on the legislation since 1999.

"I'm very excited," she said. "We're pleased South Carolina legislators took the steps to help South Carolinians."

Chairman Sen. Wes Hayes, R-Rock Hill, told the committee their hard work turned into fair legislation. The committee has been working on a compromise of the House and Senate versions since April 23 and has agreed the majority of legislation should take effect in January 2004.

"I appreciate everyone working this out," he said. "I think it's a very good compromise."