Debate is continuing over the S.C. Senate's proposed bills, but if you read between the lines of the industry's protest things are very revealing.
In an article, The State writes:
A Senate subcommittee, on a 4-3 vote, passed a bill that would limit the amount of payday loans to 25 percent of a borrower’s gross income and require a seven-day cooling-off period between loans.
The income provision would all but disqualify low-income borrowers from taking on the short-term, high interest loans. The cooling-off period would prevent what is known as loan “flipping,” which is when payday lenders collect fees on the continual renewal of the two-week loans.
“I think it will make it very difficult for any operator to continue operating in South Carolina,” said Jamie Fulmer, a spokesman for Advance America, of the Senate bill.
So, think about it. The payday lending industry is saying that if you don't allow them to lend relatively excessive amounts of money and compound an already egregious interest rate, then we can't operate.
I really have a hard time believing these companies are doing community good as they currently exist.