South Carolina Code 37-13-20. Unlawful acts
(1) first does not obtain written authorization for the sublease from the vehicle’s secured party or lessor;
Terms Used In South Carolina Code 37-13-20
- Buyer: means a purchaser of a motor vehicle under the terms of a retail installment contract. See South Carolina Code 37-13-10
- Contract: A legal written agreement that becomes binding when signed.
- Lessee: means a person who obtains possession and use of a motor vehicle through a motor vehicle lease agreement. See South Carolina Code 37-13-10
- Lessor: means a person who in the regular course of business or as a part of regular business activity leases motor vehicles under motor vehicle lease agreements or purchases motor vehicle lease agreements or a sales finance company that purchases motor vehicle lease agreements. See South Carolina Code 37-13-10
- Secured party: means a lender, a seller, or other person in whose favor there is a security interest including a person to whom accounts or retail installment sales contracts have been sold. See South Carolina Code 37-13-10
- Sublease: means an agreement whether written or oral to transfer:
(a) to a third party possession of a motor vehicle which is and, while in that third party's possession, remains the subject of a security interest which secures performance of a retail installment contract or consumer loan;
(b) or assign to a third party any of the buyer's rights, interests, or obligations under the retail installment contract or consumer loan;
(c) to a third party possession of a motor vehicle which is and, while in the third party's possession, remains the subject of a motor vehicle lease agreement; or
(d) or assign to a third party any of the lessee's or buyer's rights, interests, or obligations under the motor vehicle lease agreement. See South Carolina Code 37-13-10 - Sublease arranger: means a person who engages in the business of inducing by any means buyers and lessees to enter into subleases as sublessors and inducing third parties to enter into subleases or sublessees, however these contracts are called. See South Carolina Code 37-13-10
- Third party: means a person other than the buyer or the lessee of the vehicle. See South Carolina Code 37-13-10
- Transfer: means to transfer possession of a motor vehicle by sale, loan assumption, lease, sublease, or lease assignment. See South Carolina Code 37-13-10
(2) accepts a fee without first having obtained written authorization for the sublease from the vehicle’s secured party or lessor;
(3) accepts a fee in excess of the amount allowed by regulations promulgated pursuant to this chapter;
(4) does not disclose the location of the vehicle on the request of the vehicle’s buyer, lessee, secured party, or lessor;
(5) does not provide to the third party new, accurate disclosures under the Consumer Protection Act, 15 U.S.C. § 1601, et seq.;
(6) does not provide oral and written notice to the buyer or lessee that he is not released from liability;
(7) does not ensure that all rights under warranties and service contracts regarding the motor vehicle transfer to the third party unless a pro rata rebate for unexpired coverage is applied to reduce the third party’s cost under the sublease;
(8) does not take reasonable steps to ensure that the third party is financially able to assume the payment obligations of the buyer or lessee according to the terms of the lease agreement, retail installment contract, or consumer loan; or
(9) violates a regulation promulgated by the South Carolina Department of Consumer Affairs pursuant to this chapter.