While South Carolina lawmakers may be reluctant to ban payday lending outright, they at least need to place reasonable caps on interests rates and fees charged by lenders. A bill introduced recently by state Rep. Alan Clemmons, R-Myrtle Beach, would do just that. His bill would limit annual interest rates to 36 percent and fees to $5 for every $100 borrowed.

Those caps are identical to federal standards for loans to military personnel put into place last year. But Clemmons' bill also would prevent lenders from having multiple loans with each customer, one of the practices that creates a cycle of debt that borrowers often find impossible to break. ...

Clemmons' bill would allow the payday lending industry to continue operating in the state but with reasonable limits on what it can charge for loans. South Carolina does not want to be the only state in the region to be a mecca for payday lenders.

Traditional banks and lending institutions should be encouraged to offer alternatives to payday lending practices that meet the needs of low-income borrowers. But until they do, if the federal government is going to protect military personnel from usurious lenders, shouldn't the average South Carolinian have the same protections? The (Rock Hill) Herald