Hey to any South Carolinians out there!

My bank is primarily based in a neighboring State, but we do a little business in South Carolina. I was conducting mortgage loan reviews and found an SC loan where if the payment is more than 10 days late, we charge a late fee of 5% of the overdue principal and interest.

I was a little alarmed because in my State this is a violation of both the grace period and the maximum % threshold requirements. But I am not familiar with SC State law.

Does anyone out there know if there are any SC State laws that cover this topic and if the above scenario would constitute an issue?

First liens do not appear to be regulated.

Closed-End Second Liens

SC Code Section 34-29-140(e)

SC Code Section 37-3-203

Thanks Randy, quick follow up question:

Based on that info, is there a danger for disparate geographic treatment based on State Law (e.g. offering more favorable terms where required by other States' consumer protections)? Or is fee structure not a real basis for that concern?

Not sure how charging what the law allows in a specific jurisdiction represents a fair lending risk.