1. A. Definitions. Definitions shall be those contained in S.C. Code Ann. 37-2-701 (1976 as amended).

2. B. Recordkeeping

   1. (1) All books, agreement and records, and all other sources of information with regard to the business of providing consumer rental-purchase services must at all reasonable times be available for inspection by the Department of Consumer Affairs for the purpose of assuring that the business is being transacted in accordance with the law and applicable regulations. Failure to provide or allow access to all books, agreements and records and all other sources of information with regard to the business of providing consumer rental-purchase services will be regarded as a violation of the South Carolina Consumer Protection Code.
   2. (2) All locations must maintain a copy of all agreements for consumer rental-purchase services for as long as such agreements are in effect and for a period of one (1) year thereafter. Agreements for each calendar year must be filed in alphabetical order by the consumer’s last name. If the center uses numbered agreements, a numerical sequence file may be used instead of an alphabetical file. If a business providing consumer rental-purchase services has two or more locations, records may be consolidated at a principal office in this State. The Department of Consumer Affairs must be given written notice prior to the enactment of a policy of consolidation of records.

   3. (3) Records of Payment —A written record of any payment on an agreement must be made immediately upon receipt. Payments received must be posted on the business day received to the payment record. The payment record must show at least the following information:

      1. (a) Name or number of account;
      2. (b) The date (month, day, year) of payment;

      3. (c) The actual amount received and itemized as applied to:

         1. (i) periodic payment including taxes to lessor necessary to acquire ownership of the property;

         2. (ii) delinquency charges;

            (iii) initial non-refundable fee;

         3. (iv) security deposit;
         4. (v) delivery charge;

         5. (vi) payment pick up charge;

            (vii) any other fees allowed by the rental-purchase statute.

   4. (4) Records Maintained on Electronic Data Processing (EDP) Systems.

      1. (a) Filing of Description of Systems and Programs —Records and account systems maintained in whole or in part by electronic data processing may be used in lieu of the books, files and records required by these regulations if they contain equivalent information. Each such system must receive prior written approval from the Department. Lessors seeking such approval must file a complete and detailed written description of the system proposed to be utilized, including user instructions and an enumeration of all features that do not meet the requirements of the regulations and a full explanation as to how the equivalent information is maintained with the proposed system. User instructions must provide a clear and concise section of procedures which must be followed to operate the system as contemplated by the Department in approving the system.
      2. (b) Filing of Amendments —All changes to a lessor’s electronic data processing system must be filed with the Department at least 14 days in advance of use by a lessor.
      3. (c) Withdrawal of Approval by the Department —If based on examinations and practical experience with an EDP system and its records, the Department finds that such system and records do not provide reasonable access to information required in B(1) and (3) above, approval may be withdrawn by the Department.

   5. (5) Advertisements —All advertisements by a lessor must contain the name and an office address of the entity, which must conform to a name and address on record with the Department of Consumer Affairs.

      28-50-2.210, 3.210. “Rebate Upon Prepayment,” Simplification of the Calculation of the Unearned Portion of the Finance Charge, Allowance of the Use of Tables.

3. A. Any chart or table may be utilized for the purpose of determining the rebate provided:

   1. (1) It is prepared in accordance with the actuarial method as required by Sections 2.210(5)(b) and 3.210(5)(b) of the Consumer Protection Code;
   2. (2) It is based upon a calendar year (365 days) and takes into consideration days as well as months in computing refunds of unearned finance charge; and
   3. (3) It bears the name and address of the person responsible for its production and an identification number assigned to it by that person which shall be the same for each chart or table so produced with like numerical content and configuration.
4. B. The rebate may be computed using the Annual Percentage Rate required to be disclosed to the consumer pursuant to law or at that rate rounded to the nearest one half of one percent.
5. C. If prepayment occurs during a deferral period the amount of any deferral charge earned at the date of prepayment shall also be computed. If the deferral charge earned is less than the deferral charge paid, the difference shall be added to the unearned portion of the finance charge. If any part of a deferral charge has been earned but has not been paid, that part shall be subtracted from the unearned portion of the finance charge or shall be added to the unpaid balance.
6. D. Errors in calculations of rebates which occur because of a corresponding error in a chart produced and utilized in conformity with this rule shall not subject the creditor to any penalty imposed by any provision of the South Carolina Consumer Protection Code (Act 1241 of 1974 as amended) or any statute to which that Act refers [Section 6.506(3)]; provided that upon discovery of an error in a chart the creditor shall make no further rebates based on that chart and shall promptly notify the Department of Consumer Affairs in writing of the error and identify the inaccurate chart by giving the name and address of the person responsible for its production and its identification number.

Statutory Authority

1976 Code Section Section 37-2-210 and 37-3-210

HISTORY: Added by State Register Volume 18, Issue No. 2, eff February 25, 1994.

HISTORY: Added by State Register Volume 3, eff April 13, 1979.