A bill that would protect consumers from high-interest loans and other controversial lending practices received key House approval Wednesday.

The bill defines high-cost loans and prohibits certain provisions, such as interest increases or balloon payments. It also requires brokers to disclose how much they are earning in profits and recommends consumer credit counseling over a five-day period.

Consumer advocates say the bill protects people and their homes.

"Maintaining and preserving one's home is the most important thing that can happen to a family, other than making sure the health and well-being of your loved ones is secure," said Sue Berkowitz, director of the S.C. Appleseed Legal Justice Center in Columbia.

"Getting a predatory lending law in place will maintain homeownership and help people keep the American dream without allowing them to get into abusive loan terms," said Berkowitz, who has worked on the legislation since 1999.

The Senate passed its version of the bill last week. One major difference in the House version is the omission of mandatory credit counseling for someone seeking a high-cost loan.

Jane Wiley, legislative director for the South Carolina AARP, said she hopes mandatory credit counseling will be added when lawmakers from the Senate and House negotiate the differences in a conference committee.

"It's so important to AARP because of older borrowers being taken advantage of, especially in refinancing for home improvement loans," Wiley said.

She also prefers the Senate version when it comes to "flipping." That's the practice of repeatedly refinancing loans to generate surcharges for lenders. Flipping is different from standard refinancing that helps consumers by allowing them to take advantage of lower interest rates.

Under the Senate-approved legislation, loans could be flipped every four years. In the House, it's three years.

Wiley applauded House members for putting a fiduciary duty upon the mortgage broker.

A banker, for example, has a fiduciary duty, meaning he or she is responsible for taking the consumer's best interest into account.

"To have a mortgage broker make sure the consumer gets the best deal, that's a giant step. Right now, the mortgage brokers, although many of them perform a valuable service, really are in it in a profit-making mode," Wiley said.