Gov. Mark Sanford has vetoed a bill that would put limits on the state's payday lending industry. Sanford, known for his libertarian leanings, argued in his veto message that South Carolinians should be free to make whatever financial decision they choose.
Sanford was also disagreed with establishing a statewide database to track loans, arguing such a database might compromise the privacy rights of borrowers.
The General Assembly passed payday lending regulation in its final hours, capping payday loans at $550 and limiting borrowers to one loan at a time. The limits would outlaw flipping, which is when borrowers assume more than one loan at a time. Some borrowers take out additional loans to pay off previous loans they can't afford to pay back, sinking them into a cycle of debt. To ensure the one-loan-at-a-time standard, the bill established a statewide database to track loans.
Sanford issued 10 other vetoes Tuesday. Lawmakers will return June 16 to take up the governor's vetoes.
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-- From staff reports