Car Refinancing in South Carolina

To decrease monthly car payments, borrowers can refinance their vehicles with their existing lenders or new lenders, lowering their interest rates. Generally, state laws govern the rights consumers have when they refinance their vehicle loans. In South Carolina, the Department of Consumer Affairs provides information to consumers who refinance their automobiles from lenders conducting business within the state.

Dispelling Myths

There is no legal three-day rescission period to cancel car loans under federal or South Carolina law. The cancellation rights apply to homes and transactions made at a consumer's home. However, when consumers refinance their car loans, they most likely sign loan documents at their banks or dealerships, and therefore, the three-day rule does not apply. If the vehicle refinance occurs at a borrower's home, then she would have the right to rescind her contract within three days. Vehicle loan lenders are prohibited from taking a consumer's furniture or household appliances in exchange for providing the loan.

Rights to Cure Deficiency

Under South Carolina law, all lenders must provide consumers who default on their vehicle loans a right to cure their deficiency before they can repossess or reclaim their collateral. Lenders must give borrowers who default at least one opportunity to catch up on their payments within 20 days. After 20 days, a lender can pursue repossession if the borrower does not settle her deficiency. If she settles her deficiency and falls behind again, her lender does not have a legal duty to provide her with another right to cure. Although lenders do not have to provide more than one right to cure, they must notify consumers in writing of their default. Lenders have five days to send the notification letter to borrowers with the delinquent amount owing and the entire amount they must pay to avoid involuntary repossession.

Written Consent

Sublease lenders cannot refinance a borrower's loan without first obtaining his written permission to do so.They may not accept fees from third-party lenders or any other interested parties without first obtaining consent from the borrower to refinance his car loan. Furthermore, the Department of Consumer Affairs has the legal authority to impose annual limits and regulations for interest fees, finance charges and late fees.

Considerations

Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.