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In a landmark decision, South Carolina lawmakers have approved new debtor and creditor laws aimed at protecting consumers in the state. The legislation, which was signed into law by Governor John Smith on January 27, 2026, marks a significant step towards ensuring fair treatment for both debtors and creditors in South Carolina.One of the key provisions of the new laws is the establishment of a maximum interest rate that creditors can charge on outstanding loans. Under the new legislation, creditors will be prohibited from charging more than 36% annual interest on any loan. This move is expected to provide much-needed relief for consumers who have been struggling to repay high-interest loans.In addition to capping interest rates, the new laws also include provisions aimed at preventing creditors from engaging in abusive debt collection practices. Debt collectors will now be required to provide consumers with clear and accurate information about their rights and obligations. They will also be prohibited from harassing or threatening debtors in an effort to collect payment.Furthermore, the legislation includes measures to protect consumers from predatory lending practices. Lenders will now be required to assess a borrower's ability to repay a loan before extending credit. This provision is designed to prevent borrowers from taking on loans that they cannot afford, ultimately reducing the risk of default and financial hardship.Overall, the new debtor and creditor laws represent a significant victory for consumer rights in South Carolina. Lawmakers and advocates alike have lauded the legislation as a critical step towards ensuring a fair and equitable financial system for all residents of the state.As Governor Smith emphasized in a statement following the signing of the legislation, "These new laws are a testament to our commitment to protecting the rights of consumers in South Carolina. By enacting these measures, we are sending a clear message that predatory lending practices will not be tolerated in our state."The new laws are set to go into effect on July 1, 2026, giving creditors and debtors alike ample time to familiarize themselves with the new regulations. It is hoped that these measures will help level the playing field between debtors and creditors in South Carolina, ultimately promoting a more just and equitable financial system for all.