No loan broker shall:

(1) assess or collect an advance fee from a borrower to provide services as a loan broker.

Terms Used In South Carolina Code 34-36-20

  • Advance fee: means any consideration which is assessed or collected, prior to the closing of a loan, by a loan broker. See South Carolina Code 34-36-10
  • Borrower: means a person obtaining or desiring to obtain a loan of money, a credit card, or a line of credit. See South Carolina Code 34-36-10
  • Department: means the Department of Consumer Affairs. See South Carolina Code 34-36-10
  • Fraud: Intentional deception resulting in injury to another.
  • Loan broker: means any person who:

    (a) for or in expectation of consideration arranges or attempts to arrange or offers to fund a loan of money, a credit card, or a line of credit;

    (b) for or in expectation of consideration assists or advises a borrower in obtaining or attempting to obtain a loan of money, a credit card, a line of credit, or related guarantee, enhancement, or collateral of any kind or nature;

    (c) acts for or on behalf of a loan broker for the purpose of soliciting borrowers; or

    (d) holds himself out as a loan broker. See South Carolina Code 34-36-10

(2) make or use any false or misleading representations or omit any material fact in the offer or sale of the services of a loan broker or engage, directly or indirectly, in any act that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a loan broker, notwithstanding the absence of reliance by the buyer.

(3) make or use any false or deceptive representation or conceal a material fact in its business dealings with the borrower or with the department.

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