A title loan can be a great way to get some help in a time of sudden financial need – for example when you receive an unexpected bill or need to pay for an emergency repair. Unlike traditional loans, title loans typically don’t come with a lengthy application process. If you own a car, truck or SUV, you may be able to get the funds you need by borrowing against your vehicle’s title.1 In South Carolina, the process can often be completed in a short amount of time, sometimes as short as one business day.3 All you need is the clear-and-free title of your vehicle, a verifiable source of income, and a few documents to validate your vehicle ownership, identity and income.
However, before you apply for fast cash against your vehicle title in Columbia, Charleston, Greenville, Myrtle Beach or anywhere else in South Carolina, it’s a good idea to become familiar with the laws governing these loans in the Palmetto State. This ensures that you know your rights as a borrower, and can choose a lender that obeys the applicable laws in your state.
Are Title Loans Legal in South Carolina?
Yes! Auto title loans are legal in the state of South Carolina. Most title loan providers in South Carolina operate as state-licensed lenders, which means they are subject to the SC rules and regulations for title lending in the South Carolina statues. The South Carolina Board of Financial Institutions licenses and oversees state-licensed lenders, which includes periodic audits that are intended to monitor the licensee’s compliance with the applicable laws.
Depending on the loan amounts and loan terms that a loan company wants to offer in South Carolina, the provider may make short-term vehicle secured loans with a term up to 120 days, or longer-term installment loans pursuant to the supervised loans section of the code. Some other loan options may be available through different enabling laws, for example when national banks or banks duly registered in another state make their products available to South Carolina residents under their respective lending laws and in compliance with the Depository Institutions Deregulation and Monetary Control Act of 1980.
How Much Can I get for my Title Loan in South Carolina?
The amount of money you can receive by borrowing against your vehicle title in South Carolina isn’t as much of a legal matter as it is a decision that the lender makes based on your application information and the lender’s credit criteria. The primary factors considered for your loan application will be the value of your vehicle and your income. Note that for short-term vehicle secured loans, lenders are legally required to make a good-faith attempt to confirm your ability to repay the loan – this is for the lender’s benefit as much as the borrower’s, as neither the lender nor the borrower has a vested interest in a title loan to go into default.
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What is Considered Proof of Income for a Title Loan in South Carolina?
While lenders have a legal obligation to evaluate if you have the means to pay back your title loan, there isn’t a legally defined list of what constitutes proof of income in South Carolina. Generally, the type of document you can provide to verify your income depends on your income source. For example, if you make a living driving for Uber, you can provide bank statements that show your incoming funds for rideshare driving. If you are already retired, your pension statement may suffice.
What happens If I Fail to Pay my Title Loan in South Carolina?
If you ever find yourself unable to make your title loan payment on time, it’s important to speak with your lender or loan servicer as soon as possible. If you miss a payment on your title loan, the lender or loan servicer will send you a right to cure notice stating the amount of time you have to pay the balance of your loan before escalated collection efforts like repossession may begin. This is one of the reasons it’s so important to reach out to your lender or loan servicer if you are having trouble making payments. They would prefer not to repossess your car.
South Carolina Consumer Protections
South Carolina title loan borrowers are protected under both federal laws and some state statutes that are intended to ensure that borrowers are treated fairly. Laws apply both to the application and underwriting process, and the servicing of title loans. Some of the most useful protections that borrowers should be aware of in South Carolina include:
- The right to full disclosure of the cost of the loan before signing up for it: Reputable loan providers will comply with this by fully disclosing all applicable loan terms such as the interest rate, APR and payment schedule during the underwriting process and in the title loan contract.
- The right to cure: If a South Carolina borrower misses a title loan payment, the state statutes include a so-called “Right to Cure“, which means that the lender or loan servicer must notify the borrower about their missed payment, and how much time the borrower has to get caught up. The lender or loan servicer cannot repossess the vehicle that secures the loan until at least 20 days after mailing this notice to the borrower.
Frequently Asked Questions About SC Title Loan Laws
Here are some of the questions South Carolina applicants frequently ask before applying for a vehicle title loan:
- Is title lending legal in SC? Yes. Personal loans secured with an automobile are legal in the Palmetto State.
- Is there a maximum amount I can borrow with a title loan in South Carolina? There isn’t a specific maximum loan amount in South Carolina that’s imposed by the law. Your maximum loan amount may be legally capped by the value of your vehicle, depending on what statute the lender operates under. However, lenders usually also set their own, internal maximum loan amount. For LoanMart-serviced loans, the maximum in South Carolina is $15,000.1
- How many times can a title loan be renewed in SC? The number of times that an SC auto title loan can be legally renewed depend on whether you obtained a short-term vehicle secured loan based on SC Code §37-3-413, or a loan that was made pursuant to a different enabling law. Short-term vehicle secured loans may only be renewed for up to 6 additional periods and a maximum of 240 days. This restriction does not apply if your loan is a different type of vehicle-secured loan.
- Can a lender sue me if I can’t repay my title loan in SC? If your title loan is a short-term vehicle loan, the lender can only resort to vehicle repossession (except in the case of fraud). For other loan types, a title loan non-payment related lawsuit may be possible.
- Who regulates title loan companies in South Carolina? Title loan companies who operate based on a South Carolina lending license are regulated by the South Carolina Board of Financial Institutions. Lenders – like state banks – who legally offer loans through other enabling laws are regulated by their respective governing institutions such as the FDIC or another state licensing entity.
How to get a Title Loan Serviced by LoanMart in South Carolina
Now that you know some of the laws surrounding title loans in South Carolina, you can see that auto title loans can be a great way to get emergency funds without waiting on the application process of a traditional loan. Your qualifying car title in your name may let you be eligible for a title loan of up to $15,000.1 And, because of the streamlined process, the time between when you submit your information and when your money arrives could be less than 24 hours.3
Don’t let a sudden financial hardship ruin your day. You can apply for a South Carolina title loan serviced by LoanMart online. In a few easy steps, you can complete and verify your application information, and have the funds you need.1
