South Carolina Payday Loan Laws, Explained
Last updated: July 20, 2026
Key takeaway
Key takeaway: If you've seen older information about South Carolina's $550 payday loan cap, it's now out of date — the entire law behind it was repealed at the start of this year.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That entire framework is gone: as of December 31, 2025, every deferred-presentment license in South Carolina was revoked, and effective January 1, 2026, Chapter 39 of Title 34 — the law itself — was repealed along with all of its implementing regulations.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 That means the specific consumer protections tied to the repealed law no longer automatically apply to short-term lenders now operating under the new supervised-lender framework.
| Factor | South Carolina Rule |
|---|---|
| Deferred Presentment Services Act | Repealed January 1, 2026 |
| Old $550 cap / database rule | No longer in effect |
| Former licensees | May now operate as supervised lenders |
| Current framework | Supervised lender licensing, different rules |
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.
Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans
South Carolina Payday Loan FAQ
Are payday loans legal in South Carolina?
The old payday loan law was repealed on January 1, 2026, so the previous $550 cap and database rule no longer apply.
What changed for payday loans in South Carolina?
The Deferred Presentment Services Act was repealed; former licensees may now operate as supervised lenders under different rules.
Is the old $550 South Carolina cap still in effect?
No. It ended when the law was repealed at the start of 2026.
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