South Carolina title loan laws are different from the payday rules. A title loan uses your vehicle as collateral, so it is regulated as a secured consumer loan under the state’s Consumer Protection Code rather than the Deferred Presentment Services Act.
Quick answer: Car title loans in South Carolina are regulated as short-term vehicle-secured loans under the state's Consumer Protection Code, separate from the payday act. They risk your vehicle and often carry very high rates.
How title loans differ from payday loans
- They are secured by your car title — miss payments and the lender can repossess.
- Loan amounts are tied to your vehicle’s value, often larger than $550.
- They are not subject to the payday act’s 15% fee cap.
The real risk
The danger of a title loan is losing your transportation. In a spread-out metro like the Charleston area, where many Summerville residents commute to work by car, losing a vehicle can quickly cost you your job as well.
Safer options to weigh first
Before pledging your car, look at credit-union small-dollar loans, a payday alternative loan capped at 28% APR, or local emergency assistance. These rarely put your vehicle on the line.
FAQ
Can they take my car?
Yes. If you default on a title loan, the lender can repossess the vehicle used as collateral.
Are title loans capped like payday loans?
No. Title loans fall under the Consumer Protection Code, not the payday act’s 15% fee limit.
Is there a cheaper way to borrow against emergencies?
Credit-union PALs and small installment loans are usually far less risky.
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.