South Carolina Pawn Shop Software
Built for SC's Five-Tier Rate System

South Carolina's Five-Tier Interest Rate System

South Carolina Code §40-39-100 establishes a unique five-tier interest rate structure where maximum allowable rates decrease as loan amounts increase. Small loans under $50 can be charged $2.50 per $10 per 30-day period (25% monthly, 300% APR). As loan amounts increase, rates drop progressively: $2.00 per $10 for the $50-$100 portion, $1.50 per $10 for the $100-$200 portion, $1.00 per $10 for the $200-$1,000 portion, and just $0.50 per $10 for amounts $1,000-$2,000. Recent legislation increased the maximum loan amount to $15,000.

Pawnbroker Pawn Shop Software (PPSS) South Carolina Edition automatically calculates blended rates across multiple tiers for any loan amount, prorates interest daily for early redemption (required by law), submits electronic records to law enforcement database, and tracks the $15,000 loan cap.

Charleston to Greenville: Understanding SC's Blended Rates

PPSS calculates blended rates automatically. For a $500 loan, the software determines which portions fall into which tiers, calculates each tier's charge separately, then sums the total. No manual tier calculation needed.

How South Carolina Pawnbrokers Use PPSS

Automatic Five-Tier Rate Calculation

South Carolina's five-tier system requires calculating charges across multiple rate brackets for most loans. PPSS handles this automatically:

Example: $1,500 Loan

• Tier 1: First $50 at 25% = $12.50
• Tier 2: Next $50 ($50-$100) at 20% = $10.00
• Tier 3: Next $100 ($100-$200) at 15% = $15.00
• Tier 4: Next $800 ($200-$1,000) at 10% = $80.00
• Tier 5: Next $500 ($1,000-$1,500) at 5% = $25.00
• Total: $142.50 per month

The software automatically determines which portions of the loan fall into which tiers and calculates the blended rate. For a $1,500 loan, the effective rate is 9.5% monthly (114% APR) - much lower than the 25% charged on small loans under $50.

Daily Proration for Early Redemption

South Carolina Code §40-39-100 requires pawnbrokers to prorate interest and charges daily when customers redeem early. PPSS calculates prorated charges automatically:

Example: $500 Loan, 15-Day Redemption

• Full month charge (calculated above): $67.50
• Days in month: 30
• Daily rate: $67.50 ÷ 30 = $2.25 per day
• 15-day charge: $2.25 × 15 = $33.75
• Customer pays: $500 principal + $33.75 interest = $533.75
• Savings vs. full month: $33.75

If the customer had already paid the full month's $67.50, the pawnbroker must refund $33.75. PPSS tracks payments received, calculates prorated amounts owed, and identifies refunds due.

Electronic Database Reporting

South Carolina requires all pawnshops to provide records of pledged items by electronic data transfer to a database system accessible by law enforcement (§40-39-90). The database must be approved by the SC Department of Consumer Affairs.

PPSS generates electronic export files in CSV format for law enforcement database systems.

Required transaction data includes:

• Transaction date and time
• Customer identification (name, address, ID number)
• Item description (detailed, including serial numbers)
• Loan amount or purchase price
• Transaction type (pawn or purchase)

$15,000 Loan Cap

South Carolina Code §40-39-100(C) prohibits pawnbrokers from making loans exceeding $15,000. This represents a significant increase from the previous $2,000 cap and allows pawnbrokers to serve customers with higher-value collateral.

PPSS tracks loan amounts and allows pawnbrokers to monitor compliance with the $15,000 cap.

90-Day Hold Orders for Suspected Stolen Property

Under §40-39-145, law enforcement can place a written hold order on property suspected to be stolen or misappropriated. The hold order imposes a 90-day holding period (unless extended by court order). During this period:

• Pawnbroker cannot sell or release the property
• Law enforcement may take custody for investigation
• After 90 days, pawnbroker must notify law enforcement in writing
• If no extension received within 10 days, title vests in pawnbroker

PPSS tracks hold orders, calculates 90-day expiration dates, flags items under hold, and generates expiration notices.

South Carolina Pawn Regulation Overview

Statutory Framework: SC Code Title 40, Chapter 39

Interest Rates (§40-39-100):

• Five-tier progressive rate structure
• $0-$50: $2.50 per $10 per month (25% monthly, 300% APR)
• $50-$100: $2.00 per $10 per month (20% monthly, 240% APR)
• $100-$200: $1.50 per $10 per month (15% monthly, 180% APR)
• $200-$1,000: $1.00 per $10 per month (10% monthly, 120% APR)
• $1,000-$15,000: $0.50 per $10 per month (5% monthly, 60% APR)
• Daily proration required for early redemption
• $15,000 maximum loan amount

Licensing (§40-39-20, §40-39-30):

• Certificate of Authority required from SC Department of Consumer Affairs
• $275 filing fee per location
• Annual renewal by June 30
• Background checks required
• Felony convictions prohibit licensure

Record-Keeping (§40-39-70, §40-39-90):

• Complete record of all loans and purchases
• Electronic data transfer to law enforcement database (required)
• Database approved by Department of Consumer Affairs
• Identity verification required (only owners or agents may pawn/sell)

Hold Orders (§40-39-145):

• 90-day holding period for suspected stolen property
• Law enforcement may place written hold orders
• Pawnbroker must notify law enforcement upon expiration
• Title vests in pawnbroker if no extension within 10 days

Penalties (§40-39-150, §40-39-160):

• Up to $750 per offense (max $15,000 for same set of transactions)
• License suspension or revocation possible
• Misdemeanor charges for certain violations ($500 fine or 30 days imprisonment)

PPSS provides: Five-tier automatic rate calculation, daily proration for early redemption, CSV electronic database exports for law enforcement, loan amount tracking, 90-day hold order tracking, complete transaction records, pawn ticket generation.

Pricing: PPSS South Carolina Edition