| Sanford signs preditory lending bill |
| Governor Mark Sanford signed a bill today
that was created to protect borrowers from unfair high interest loans and unscrupulous lenders. Under the new law, companies are blocked from making high-cost loans that hurt particularly low-income and elderly borrowers. The law requires anyone seeking to borrow money at a higher-than-market interest rate to attend a free credit counseling session. It also bans certain practices such as flipping, which is the repeated refinancing of loans typically done when a borrower is having trouble making payments. That practice often puts the borrower further into debt but generates a high fee income for the lender. Sanford say the law balances consumer protections against excessive regulations in the lending industry. |