Last week, Mark Sanford, the governor of South Carolina, exercised his veto power on H.3790, a pay day loan bill that would have made the standard repayment period 120 days rather than the common 14 without increasing the total fees charged by lenders. In addition, an approved H.3790 would have rid South Carolina of both unsecured loans and the post-dated checks used for secured loans. The South Carolina House disagreed with Sanford’s move; they overturned his veto. In doing this, they also went against the governor’s veto of the portions of the bill that affected mortgage industry licensing fees.
Source for this article: South Carolina House overturns veto of payday loans no faxing bill By Personal Money Store
Why Mark Sanford said no to payday loan-crippling H.3790
In a letter to the state House, Governor Mark Sanford writes regarding his veto of the payday loan bill that
“Although this type of regulation is intended to protect the public, these kinds of laws ultimately decrease the number and type of available financing options and make it harder for new lenders to enter the market. In other words, consumers have fewer choices and the available options become more expensive. … Some people will benefit from payday–style loans and some will not, and we continue to believe that individual consumers are better equipped than a government bureaucracy to know whether a short-term loan is a wise decision in any given circumstance.”
Allow the people to choose
A payday loans or comparable loans with no credit check – whether they’re unsecured loans or not – are typically more the domain of credit-strapped consumers, instead of state legislators who are paid significantly a lot more, so it follows the general public should be allowed to determine if the loans work for them. If Mark Sanford, a man of privilege, can see that, the legislators should be able to as well. At this moment, South Carolina allows payday loans borrowers up to $550 at a time, and only one loan can be active. Payday loan customer history is maintained in a statewide computer database.
A lot more veto's to be flipped in the Palmetto State
A separate veto override against Sanford points back toward his history of impropriety along the Appalachian Trail, so to speak. The House nixed Gov. Sanford’s veto of a bill that would “allow data to be made public in a state ethics investigation of the governor when it indicates possible cause that a violation may have occurred,” reports S.C. Politics Today. The vote against that veto was a massive 102-2. Sanford has gone on record as saying that he vetoed the bill because he wanted the language of that bill expanded to contain all state lawmakers, not just the governor.
A lot more details on this topic
thestatecom.typepad.com/ygatoday/2010/06/house-overrides-sanford-on-payday-lending-ethics.html
docs.google.com/viewer?url=http://www.scgovernor.com/NR/rdonlyres/A0AB7D58-484C-49EC-9DD7-856ED2D5D7C3/35671/H3790MortgageLoanOriginator.pdf
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