The South Carolina Department of Consumer Affairs announced new amendments to the motor vehicle closing fee law that state legislators approved earlier this month.
The new law requires vehicle dealerships charging over $225 in closing fees to fill out additional paperwork and undergo review by the Department of Consumer Affairs. Only closing fees less than $225 will automatically be considered reasonable.
SCDCA spokeswoman Juliana Harris, motor vehicle dealers had the ability to charge excessive closing fees before the new law was in place.
“It used to be that vehicle dealers could charge closing fees and sometimes they would be in excess of $500, $600, $700 and even up to $1000,” Harris said. “The only stipulation was that they needed to contact our department and let us know what that maximum fee was going to be.”
Now, vehicle dealerships charging over $225 will be required to justify why they need extra money in their closing fees by providing additional information to the SCDCA. Vehicle dealerships are not required to charge closing fees, but are permitted to by law.
Vehicle dealerships charging closing fees have until July 3 to comply with the new amendments.