Just lately, South Carolina Gov. Mark Sanford vetoed H.3790, a pay day loan bill that would have stretched the payment period from two weeks to four months (without changing the fees charged). Furthermore, H.3790 would have eliminated quick unsecured loans in South Carolina and outlawed the common practice of a customer presenting a lender with a post-dated check. However, S.C. Politics Today reports that the South Carolina House of Representatives has overridden Gov. Sanford’s veto. In doing so, they also went against the governor’s veto of the portions of the bill that affected mortgage industry licensing fees.
Article Resource: South Carolina House overturns veto of pay day loans bill
Payday loans no faxing bill H.3790: Why Gov. Sanford said no
Gov. Sanford explained to the state legislature that his payday loan bill veto was warranted because
“Although this type of regulation is intended to protect the public, these kinds of laws ultimately decrease the number and type of available financing options and make it harder for new lenders to enter the market. In other words, consumers have fewer choices and the available options become more expensive. … Some people will benefit from payday–style loans and some will not, and we continue to believe that individual consumers are better equipped than a government bureaucracy to know whether a short-term loan is a wise decision in any given circumstance.”
The public knows what works best for them
It is common knowledge that state legislators are less likely to need a pay day or similar loans with no credit check – unsecured loans or otherwise – than the average credit-constrained consumer, so it is logical that consumers should be allowed to choose for themselves. Governor Sanford clearly sees the matter in those terms, even if his state’s legislature doesn’t. As of now, payday loan law in South Carolina allows borrowers one loan at a time, up to $550. This activity is tracked in an electronic database.
Another bill, another overturned veto
Another stinging veto override delves into Gov. Sanford’s alleged history of impropriety with South Carolina tax dollars. The House nixed Gov. Sanford’s veto of a bill that would “allow information to be made public in a state ethics investigation of the governor when it indicates possible cause that a violation may have occurred,” reports S.C. Politics Today. The vote against that veto was a massive 102-2. Gov. Sanford has said he vetoed it within the first place because he believed it should reference all state lawmakers, not just the governor.
Additional details at these websites
thestatecom.typepad.com/ygatoday/2010/06/house-overrides-sanford-on-payday-lending-ethics.html
docs.google.com/viewer?url=http://www.scgovernor.com/NR/rdonlyres/A0AB7D58-484C-49EC-9DD7-856ED2D5D7C3/35671/H3790MortgageLoanOriginator.pdf
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