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South Carolina Payday Loan Laws, Explained

Last updated: July 20, 2026

If you've seen older information about South Carolina's $550 payday loan cap, it's now out of date — the entire law behind it was repealed at the start of this year.

What the Old Law Used to Say

Since 2009, South Carolina regulated payday lending under the Deferred Presentment Services Act (S.C. Code Ann. § 34-39-110 et seq.), which capped loans at $550, limited borrowers to one loan at a time, and required lenders to check a statewide online database before issuing a new loan.

The 2026 Repeal

That entire framework is gone: as of December 31, 2025, every deferred-presentment license in South Carolina was revoked, and effective January 1, 2026, Chapter 39 of Title 34 — the law itself — was repealed along with all of its implementing regulations. There's no longer a "deferred presentment" payday-loan license category in the state at all.

What Replaced It

Existing licensees were given a path to transition, at no cost, from a deferred-presentment license into a "supervised lender" license under the Nationwide Multistate Licensing System — a different regulatory category that isn't bound by the old $550 cap or the mandatory database check. That means the specific consumer protections tied to the repealed law no longer automatically apply to short-term lenders now operating under the new supervised-lender framework.

FactorSouth Carolina Rule
Deferred Presentment Services ActRepealed January 1, 2026
Old $550 cap / database ruleNo longer in effect
Former licenseesMay now operate as supervised lenders
Current frameworkSupervised lender licensing, different rules
Because this changed very recently, verify a lender's current license type and terms directly with the South Carolina Department of Consumer Affairs before applying — don't rely on older articles describing the repealed law.

Given how recent this change is, comparing offers from multiple licensed lenders — and confirming their current license type — matters more than usual in South Carolina right now.

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