Last week, Mark Sanford, the governor of South Carolina, exercised his veto power on H.3790, a payday loans no faxing bill that would have made the standard repayment period 120 days instead of the common 14 without increasing the total fees charged by lenders. Furthermore, H.3790 would have eliminated unsecured personal loans in South Carolina and outlawed the common practice of a customer presenting a lender with a post-dated check. The South Carolina House disagreed with Sanford’s move; they overturned his veto. The bill also affected regulation of licensing fees for the state’s mortgage industry.
Resource for this article: South Carolina House overturns veto of payday loans no fax bill By Personal Money Store
Mark Sanford was against payday loan-strangling H.3790
Gov. Sanford explained to the state legislature that his pay day loans bill veto was warranted because
“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.”
The public knows what works best for them
It is common knowledge that state legislators are less likely to need a pay day or similar loans with no credit check – short term loan or otherwise – than the average credit-constrained consumer, so it is logical that consumers should be allowed to determine for themselves. Gov. Mark Sanford can see that, so it’s strange that the South Carolina legislature cannot. could be active}. Loan activity is tracked electronically.
A lot more veto’s to be flipped within the Palmetto State
Another overturned veto ventures into territory of Mark Sanford’s alleged history of impropriety with South Carolina taxpayer funds. As outlined by S.C. Politics Today, the second veto block kills Sanford’s objection the bill would have “allowed info to be made public in a state ethics investigation of the governor when it indicates possible cause that a violation may have occurred”. The vote against that veto was a massive 102-2. Gov. Sanford has said he vetoed it within the first place because he believed it should reference all state lawmakers, not just the governor.
Citations
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
