South Carolina remains one of the busier states, when it comes to auto title loans. But there is an ever increasing pressure on these sorts of loans, as so many of them seem to so clearly take advantage of people’s desperation. Depending on (a) how much you borrowed; and (b) how you made the contract, you might have grounds to complain. I’ll give you some links, case laws, and basic complaints that you can try to make. First, based on your location and income, try getting some low (or no) cost help from South Carolina legal aid groups: http://www.sclegal.org/.
 
You can look at how rules have developed to protect people in your situation ( “small dollar loans”), here through the United States Treasury: http://www.treasury. gov/resource-center/financial-education/ Documents/ Research%20on%2 0Financial%20Behaviors%20and%20Use%20of%20Small-Dollar%20Loans%20and%20 Financial%20Services%20-%20Literature%20Review.pdf . This Treasury survey might help you, by showing what laws are being violated in your case. Consider filing a complaint with the South Carolina Department of consumer affairs… http://www. consumer.sc.gov/consumer/ComplaintInstructions/Pages/default.aspx.
 
South Carolina Laws On Auto Title Loans
 
Among the changes to South Carolina laws were new rules to protect consumers, in 2007….http://law.justia. com/codes/south-carolina/2009/title-37/chapter-3/. Unfortunately, these new consumer protections only covered the smallest dollar amounts of auto title loans in South Carolina. The reality is that title loans are still allowed in South Carolina, but only through a loop-hole in the State’s consumer protection laws. Some lenders size loans to be outside the State’s rate-cap limits. So in South Carolina, auto title loans are called “601 loans” because the threshold for small loan rate caps is $600.This may mean the 601 loophole can close, and close quickly, if enough consumers complain. In addition to the Consumer Protection department, consider complaining to the state Attorney General’s office: http://www.scag.gov/contact-us. You can check the current status of South Carolina’s laws here: http://www.responsiblelending.org/other-consumer-loans/car-title-loans/tools-resources/car-title-lending-by-state.html.
 
What About A Lawsuit?
 
There is a chance of your becoming a part of a class action. Because South Carolina has so many auto title loans, this will be something that lawyers who specialize in finding consumer class action cases might want to hear about. You can try getting a free consultation through South Carolina’s Bar Association, here: http://www.scbar. org/Public Services/FindaLawyer.aspx.
 
I would also urge you to think about filing a small claims suit. Here’s a great guide to the process: http://www3.charlestoncounty.org/docs/Magistrates/summfaq.htm.You need to know a little something about contracts, and what may make the contract invalid or void. Because a magistrates court tends to be informal, you are not as burdened by complicated legal defenses from the title lender. Some reasons to find a contract unenforceable can be if you show the company lied to you, misrepresenting the amount of the loan. There may be a flaw in the contract, small print you cannot read, or that it is so complicated it’s confusing or misleading.
 
I would caution you, that in any lawsuit, you face some obstacles. South Carolina is not the most consumer-friendly state. One way to fight this possible bias can be an argument that the contract you signed is what’s called an “adhesion” contract. Besides any arguments you may make (referred to in the last paragraph), you can add the possibility that what you signed was what’s called “unconscionable.” I’ll give you a case, and suggest you look especially at the idea of (and especially the part of the court’s wording where it talked about being unconscionable) the contract burdened you much more than the lender…that it was so unbalanced on its face, that it is unenforceable. http://caselaw.findlaw.com/sc-court-of-appeals/1042332.html.