South Carolina § 37-7-116 Prohibited acts.

South Carolina Statutes

§ 37-7-116 — Prohibited acts.

South Carolina § 37-7-116

Title 37CONSUMER PROTECTION CODE

Ch. 7CONSUMER CREDIT COUNSELING

This text of South Carolina § 37-7-116 (Prohibited acts.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 37-7-116 (2026).

Text

(A)A licensee may not:

(1)obtain an agreement from a consumer waiving a right the consumer has pursuant to this chapter;

(2)charge a fee to a consumer if the consumer enters into a debt management plan with the licensee to rescind a DMP contract;

(3)advertise in a statement or representation with regard to the rates, terms, or conditions of credit counseling service in a manner that is false, misleading, or deceptive;

(4)require as a part of the agreement between the licensee and consumer the purchase of stock, insurance, commodity, service, or other property or interest in them;

(5)directly or indirectly accept payment or other consideration from a person for referring applicants to that organization;

(6)offer to pay or give any cash, fee, gift, bonus, premiums, reward, or other co

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(A) A licensee may not: (1) obtain an agreement from a consumer waiving a right the consumer has pursuant to this chapter; (2) charge a fee to a consumer if the consumer enters into a debt management plan with the licensee to rescind a DMP contract; (3) advertise in a statement or representation with regard to the rates, terms, or conditions of credit counseling service in a manner that is false, misleading, or deceptive; (4) require as a part of the agreement between the licensee and consumer the purchase of stock, insurance, commodity, service, or other property or interest in them; (5) directly or indirectly accept payment or other consideration from a person for referring applicants to that organization; (6) offer to pay or give any cash, fee, gift, bonus, premiums, reward, or other compensation to a person for referring a prospective customer to the licensee; (7) unreasonably disclose information to third parties regarding the amounts owed by a consumer; (8) make a fraudulent, deceptive, or misleading representation to obtain information about a consumer, to solicit business with a consumer, or otherwise in connection with providing services for or on behalf of any consumer; (9) use unconscionable means to obtain a contract with a consumer or collect or attempt to collect a debt owed to the seller; (10) engage in any unfair or deceptive act or practice in connection with a credit counseling service provided to a consumer, offering or establishing a term or condition in a contract with a consumer for providing the service, or any advertisement, or solicitation relating to the service; (11) collect a payment from a consumer before the payment being earned as specifically defined in the contract between the licensee and the consumer; (12) operate another business at the licensed location without authorization from the department; (13) execute a contract or agreement to be signed by the consumer unless the contract or agreement is fully and completely filled in and finished; (14) make loans to debtors; (15) issue credit cards or act as an agent in procuring customers for a credit card company or a financial institution; (16) purchase any debt or obligation of a consumer; (17) receive or charge a fee in the form of a promissory note or other negotiable instrument other than check or a draft; (18) represent that it is authorized or competent to furnish legal advice or perform legal services unless supervised by an attorney as required by South Carolina law; or (19) compensate its employees on the basis of a formula that incorporates the number of consumers the employee signs to a debt management plan. (B) A violation of this section renders an agreement between the licensee and the consumer void.