(1) Except as provided in subsection (2), if any scheduled payment of a consumer loan is more than twice as large as the average of earlier scheduled payments, the consumer has the right to refinance, without penalty, the amount of that payment at the time it is due. The terms of the refinancing shall be no less favorable to the consumer than the terms of the original transaction.
(2) This section does not apply to:
(a) a transaction pursuant to a revolving loan account;
(b) a transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the consumer;
(c) a credit transaction to the extent a formula for determining the rate of the loan finance charge and any change in the amount of payment upon renegotiation or refinancing is specified in the agreement between the parties or is an alternative mortgage instrument; or
(d) a transaction of a class defined by rule of the administrator as not requiring for the protection of the consumer his right to refinance as provided in this section.
HISTORY: 1962 Code Section 8-800.272; 1974 (58) 2879; 1982 Act No. 385, Section 35; 1989 Act No. 144, Section 4.
Structure South Carolina Code of Laws
Title 37 - Consumer Protection Code
Section 37-3-101. Short title.
Section 37-3-103. Index of definitions.
Section 37-3-104. "Consumer loan" defined.
Section 37-3-105. First mortgage real estate loans.
Section 37-3-106. "Loan" defined.
Section 37-3-107. "Lender"; "precomputed"; "principal" defined.
Section 37-3-108. "Revolving loan account" defined.
Section 37-3-109. "Loan finance charge" defined.
Section 37-3-200. Restricted loans and restricted lenders.
Section 37-3-201. Loan finance charge for consumer loans.
Section 37-3-202. Additional charges.
Section 37-3-203. Delinquency charges.
Section 37-3-204. Deferral charges.
Section 37-3-205. Loan finance charge on refinancing.
Section 37-3-206. Loan finance charge on consolidation.
Section 37-3-207. Conversion to revolving loan account.
Section 37-3-208. Advance to perform covenants of debtor.
Section 37-3-209. Right to prepay.
Section 37-3-210. Rebate upon prepayment.
Section 37-3-301. Application of and compliance with Federal Truth in Lending Act.
Section 37-3-302. Receipts; statements of account; evidence of payment.
Section 37-3-303. Notice to cosigners and similar parties.
Section 37-3-304. Advertising.
Section 37-3-305. Filing and posting maximum rate schedule.
Section 37-3-306. Notice of assumption rights.
Section 37-3-308. Manufactured home loan disclosure; material terms.
Section 37-3-402. Balloon payments.
Section 37-3-403. No assignment of earnings.
Section 37-3-404. Attorney's fees.
Section 37-3-405. Charges as a result of default prohibited except as authorized by title.
Section 37-3-406. Notice of assignment.
Section 37-3-407. Authorization to confess judgment prohibited.
Section 37-3-408. Change in terms of revolving loan accounts.
Section 37-3-409. Use of multiple agreements.
Section 37-3-410. Lender subject to claims and defenses arising from sale and leases.
Section 37-3-411. Card issuer subject to claims and defenses.
Section 37-3-412. Variable interest rate real estate mortgage loans.
Section 37-3-413. Short-term vehicle secured loans; notice to borrower.
Section 37-3-502. Authority to make supervised loans.
Section 37-3-503. License to make supervised loans.
Section 37-3-504. Revocation or suspension of license.
Section 37-3-505. Records; annual reports.
Section 37-3-506. Examinations and investigations.
Section 37-3-507. Application of Part on Administrative Procedure and Judicial Review.
Section 37-3-509. Use of multiple agreements.
Section 37-3-510. Restrictions on interest in land as security.
Section 37-3-511. Regular schedule of payments; maximum loan term.
Section 37-3-512. Conduct of business other than making loans.
Section 37-3-513. Application of other provisions.
Section 37-3-514. Limitation on attorney's fees.
Section 37-3-515. Loan renewal limitations.
Section 37-3-601. Loans subject to this Title by agreement of parties.