Some legislators attempt to revive payday lending regulations

COLUMBIA — A couple of strategies are being deployed to revive pending legislation to place more restrictions on payday lenders, including a move by state Sen. Robert Ford Tuesday to block all House bills in protest until the matter is settled.

Last week, House Labor, Commerce and Industry Chairman Harry Cato, R-Travelers Rest, decided not to discuss the legislation any more in the committee after the members failed to reach consensus on a number of meetings and in private conversations.

The final blow, Cato said, was when AARP announced that it would like to see a total ban on the industry in South Carolina. Georgia and North Carolina have banned payday lending.

Regulating payday lenders is, in Sen. Ford's opinion, the most important matter facing the Legislature, he said. He has been pushing for restrictions for the entire two-year session. Initially, Ford also wanted to ban the lenders but decided that until other financial outlets could serve the same purpose for small, short-term loans that the industry was better left intact, but restricted.

The industry traps people in a cycle of debt that they cannot break, Ford said.

For more on the story, check out Wednesday's editions of The Post and Courier.