South Carolina Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

South Carolina's lemon law covers new private passenger vehicles and motorcycles (including three-wheel motorcycles) sold and registered in the state for personal, family or household use, excluding the living portion of recreational vehicles and off-road vehicles. If a vehicle does not conform to its warranty within the first 12 months or 12,000 miles, whichever comes first, and the consumer reports it during the warranty, the manufacturer must make the repairs at no cost. If a defect that substantially impairs use, market value or safety cannot be fixed after a reasonable number of attempts, the manufacturer must replace the vehicle or, at its option, refund the full purchase price including finance charges, taxes and government fees, minus a use allowance based on miles driven before the first report. A reasonable number of attempts is presumed if the same defect was repaired three or more times, or the vehicle was out of service 30 or more calendar days during the warranty. Before using the law, the consumer must give the manufacturer written notice (by registered, certified or express mail) and a final repair opportunity of up to 10 business days, if the manufacturer disclosed this requirement at sale. If the manufacturer has a qualifying dispute program, the consumer must use it first. A lawsuit must be filed within three years of delivery, and a winning consumer may recover costs and attorney's fees.

Under South Carolina's Consumer Protection Code, a buyer may cancel a home solicitation sale until midnight of the third business day after signing. This covers consumer credit sales (including those paid by credit card or certain consumer loans) that are personally solicited and agreed to at a residence. Notice must be written and is effective when mailed. The buyer cannot cancel if the buyer, in a separate signed statement describing an emergency, asked for immediate goods or services and the seller has substantially begun performance.

The South Carolina Unfair Trade Practices Act declares unfair or deceptive acts or practices in trade or commerce unlawful. A person who suffers an ascertainable loss of money or property may sue individually (not as a class) for actual damages; if the violation was willful or knowing, the court must award three times actual damages. The court must also award reasonable attorney's fees and costs when it finds a violation.

When the Governor declares a state of emergency, it is unlawful to rent or sell, or offer, a commodity at an unconscionable price in the emergency area, or to charge unconscionable prices for renting dwelling units, hotel or motel rooms, other temporary lodging or self-storage there, until the declaration expires or ends. A price is unconscionable if it shows a gross disparity from, or grossly exceeds, the average price in the 30 days before the declaration and the increase is not due to added costs or market trends. Commodities include goods and services such as food, water, ice, chemicals, petroleum products and lumber needed because of the emergency. Similar rules apply after certain presidential disaster declarations. Violations fall under the Unfair Trade Practices Act.

A store gift certificate or gift card may not expire before the first anniversary of its issue or sale unless the earlier expiration date is printed on the front in capital letters in at least 10-point type; a nonconforming expiration date is treated as one year from sale. Any condition that reduces the card's value over time or charges a fee against the balance must be clearly stated on the card, its envelope or the receipt; otherwise the card can be redeemed at any time for its original value minus what the consumer has spent.

Credit counseling organizations, including those offering debt management plans, must be licensed by the South Carolina Department of Consumer Affairs before providing services to South Carolina consumers, must post a surety bond, and may charge only the fees the Department sets by regulation. Debt management plans require a written contract with required disclosures and cancellation terms, and consumer funds must be held in trust accounts.

A person or firm must be registered with or licensed by the South Carolina Residential Builders Commission to engage in, or offer, residential building or residential specialty contracting. Doing so without a license or registration is a misdemeanor, and an unlicensed or unregistered contractor who was required to have one may not file a mechanics' lien or sue to enforce the contract.

A business in South Carolina that owns or licenses personal identifying information must notify affected residents of a breach in the most expedient time possible and without unreasonable delay, when the information was not encrypted or redacted and illegal use has occurred, is reasonably likely, or creates a material risk of harm. Personal identifying information is a name combined with a Social Security number, driver's license or state ID number, financial account or card number with its access code, or other numbers that can access financial accounts or uniquely identify a person. If more than 1,000 people are notified at once, the business must also notify the Department of Consumer Affairs' Consumer Protection Division and the national credit reporting agencies. A resident injured by a violation may sue (for damages for a willful and knowing violation, or actual damages for a negligent one), and knowing and willful violations can bring an administrative fine of $1,000 per affected resident.

The South Carolina Department of Consumer Affairs (SCDCA) processes and mediates written consumer complaints and encourages consumers to contact the business first. Complaints can be filed through the online complaint portal or on a paper form mailed to PO Box 5757, Columbia, SC 29250. SCDCA refers complaints that belong to other agencies, and its online database lets the public search complaints filed since 2014. Staff can be reached at (800) 922-1594 (toll free in South Carolina) or 803-734-4200.

1) Report the problem to the manufacturer or its agent during the express warranty term; the defect must arise within the first 12 months or 12,000 miles, whichever comes first. 2) Written notice and final repair attempt: if the manufacturer clearly told the consumer about this requirement at the time of sale, the consumer must give the manufacturer written notice of the need for repair, sent by registered, certified or express mail, before using the lemon law. Within 10 business days the manufacturer must direct the consumer to a reasonably accessible franchised dealer's repair facility, and once the vehicle is delivered there, it gets a final repair period of no more than 10 business days. If that fails, the manufacturer must replace the vehicle or refund the purchase price. 3) Arbitration: after the consumer reports that the vehicle still is not fixed, the manufacturer must say whether it has an informal dispute settlement procedure. If it has one that substantially complies with federal rules (16 C.F.R. part 703), or takes part in a panel whose decisions bind it, the consumer must first use that procedure, or the alternate state procedure, before the refund-or-replacement remedy applies. The Administrator of the Department of Consumer Affairs may set up a state arbitration board for manufacturers without a qualifying program; its cost is paid by the manufacturer. 4) Deadline to sue: a lawsuit must be filed within three years after the vehicle was originally delivered to the consumer.