Effective July 1, 2014, South Carolina increased the dollar amount for its anti-deficiency statute from $5,300 to $5,450. What does this mean? If a creditor repossesses your car or other secured personal property in South Carolina, the creditor cannot go after you for a deficiency if the amount you originally paid to buy the property was $5,450 or less.
If your car or other secured personal property is repossessed, in most cases the creditor will sell the property. If the sale proceeds are not enough to cover the unpaid loan balance plus the costs of repo and sale, the difference between the two numbers is called the deficiency. In most cases, the creditor can try to collect this amount from you. If you don’t pay, it can sue you.
South Carolina places limits on a creditor’s right to collect a deficiency. If you paid $5,450 or less for the car or other secured property, the creditor cannot try to collect a deficiency from you. (Learn more about South Carolina’s anti-deficiency law.)
While this law doesn’t help most former car owners (most people pay more than $5,450 for a car), it might make a big difference for those who bought other types of personal property (like electronics or home appliances) with lower purchase prices.