Talk of a South Carolina payday loan repeal comes from Senate Bill S.379, filed in February 2025. It’s important to separate what the bill proposes from what is actually law today.
Quick answer: South Carolina Senate Bill S.379, introduced in February 2025, proposed ending new payday loans and repealing the payday act. As of 2026 it was introduced and referred to committee but not enacted, so payday lending remains legal.
What the bill would do
- Stop issuing and renewing payday (deferred presentment) licenses.
- Bar new payday loans after a set date and repeal the payday act.
- Let existing lenders transition to supervised-lender licenses.
Its real status
S.379 was introduced and referred to the Senate Banking and Insurance Committee, but the official legislative record does not show it becoming law. Some websites describe its provisions as if they’re already in effect — that’s inaccurate. The payday act remains on the books and the state still licenses payday lenders in 2026.
Why it matters to borrowers
If a repeal ever passes, existing loans would be wound down with no-cost payment plans and borrowers would rely on installment loans, credit unions, and earned wage access instead. Until then, current payday rules — the $550 cap and 15% fee — still apply.
FAQ
Did South Carolina ban payday loans?
No. As of 2026 the repeal bill has not been enacted and payday lending is still legal.
Why do some sites say it’s banned?
They confuse the bill’s proposed text with enacted law. Always check the official legislature record.
What would replace payday loans if it passes?
Installment loans, credit-union products, and earned wage access services.
This article is for educational purposes only and is not financial or legal advice. Loan laws change — before you borrow, verify the lender is licensed with the South Carolina Board of Financial Institutions, Consumer Finance Division, and compare cheaper options first.