Initial approval was given yesterday in South Carolina's Senate for a bill that would ultimately kill the payday loans industry.  The Senate subcommitee passed a bill, with a 4-3 vote, that would limit payday loans to 25 percent of the customer's gross income.  The bill would also require a seven-day waiting period between loans.  

The limit based on the borrower's income would basically disqualify the lower income costumers from getting a payday loan, which is a short term, high interest loan.  A similar bill was passed in the Senate last year that was very similar to the recent bill.  The House later killed that bill. 

Jamie Fulmer, a spokesman for the payday lending company, Advance America, stated his feelings regarding the passing of such a bill.  He said, "I think it will make it very difficult for any operator to continue operating in South Carolina."

There have already been several legislative measures to limit or restrict how payday loan companies operate.  Now, some in the Senate want to pass legislation that would require even more regulations and make it very difficult for any payday loan company to survive. 

Concerning more stict legislation, John Ruoff, research director for South Carolina Fairshare, stated, "We think this is a real strong approach.  If you're not going to ban them, then you have to regulate them heavily."  The very obvious problem with that comment is that, by "heavily" regulating the industry, to the extent that they are trying to, the industry won't need regulation for long, because it will die. 

The only thing a bill like this will do is eliminate hundreds of jobs and taking consumer freedom away from citizens.  Payday loans are available to those who want or need them.  Taking that option away is just limiting choice.  Regulations are already in place to protect some consumer rights.  Consumer advocates should be satisfied and payday loans should continue to be an option to those who need them.