South Carolina enacted a comprehensive Structured Settlement Protection Act during its 2023 legislative session, with registration requirements taking effect January 1, 2024. This makes South Carolina one of the most recent states to establish a formal registration framework for structured settlement purchase companies. The new Act is codified within the South Carolina Code and is administered by the Secretary of State’s Office.
⚡ Key Takeaways — South Carolina (2024 Registration Act)
📜 Governing Statute
The South Carolina Structured Settlement Protection Act was passed during the 2023 legislative session. The Act establishes definitions, company prohibitions, disclosure requirements, court approval procedures, and a mandatory registration system for all structured settlement purchase companies operating in the state.
🛡️ Registration Requirement
As of January 1, 2024, no person may act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in South Carolina, or file a structured settlement transfer proceeding unless the person is registered with the Secretary of State to do business as a structured settlement purchase company.
Registration Fees
| Fee Type | Amount |
|---|---|
| Initial Application | $1,250 |
| Annual Renewal | $200 |
| Failure to Register Penalty | Up to $10,000 |
Surety Bond Requirement
As part of registration, each structured settlement purchase company must certify that it has secured a surety bond or cash bond in the amount of $50,000. The Secretary of State’s Office has created a bond template that incorporates the Act’s requirements, available on the SOS website. Applicants may use this template or provide their own bond that meets the statutory requirements.
Judgment Reporting
Within 10 days after a judgment is secured against a registered company by a payee, the company must file a notice with the Secretary of State and the surety, providing a copy of the judgment, the name and address of the judgment creditor, and the status of the matter—including whether the judgment will be appealed or has been paid or satisfied.
🛡️ Registration Process
Registration is completed through the Secretary of State’s Office using the Application for Registration as a Structured Settlement Purchase Company. The same application form is used for both initial registration and annual renewal. The application can be filed online through the SOS website. Key application requirements include:
- Company identification and contact information
- Certification of surety bond or cash bond ($50,000)
- Disclosure of any judgments, regulatory actions, or disciplinary history
- Designation of a registered agent in South Carolina
📄 Disclosure and Court Approval
The Act follows the standard SSPA framework for disclosure requirements and court approval. Transferees must provide detailed written disclosures to payees, and transfers must be approved by a court that finds the transaction is in the payee’s best interest. The Act includes standard protections including notification requirements for interested parties and provisions ensuring the payee has been advised of the right to seek independent professional advice.
💡 Practical Considerations
- New registration regime—companies must register before engaging in any transfer activity involving South Carolina payees, effective January 1, 2024
- $10,000 penalty for non-registration—this is one of the steeper penalties among states with registration requirements
- $50,000 surety bond—comparable to Nevada’s bond requirement; companies operating in multiple registration states can often use the same surety provider
- Annual renewal required—at the lower $200 annual fee; mark renewal dates to avoid lapses
- Online filing available—streamlines the registration process compared to states requiring paper filings
📋 Resources
- SC Secretary of State — Structured Settlements Page
- South Carolina Structured Settlement Protection Act (2023 Session)
❓ South Carolina Structured Settlement FAQ
When did South Carolina start requiring SSPC registration?
South Carolina’s registration requirement took effect January 1, 2024, making it one of the most recent states to establish a formal SSPC registration framework.
What are the costs to register as an SSPC in South Carolina?
The application fee is $1,250 and companies must post a $50,000 surety bond. The penalty for operating without registration is $10,000.
📋 Related State Guides
📋 Resources
📖 Glossary of Structured Settlement Terms · 📍 State Registration Requirements · 📄 Editorial Guidelines
⚠️ Disclaimer: This guide provides general information about South Carolina structured settlement law for educational purposes only. It does not constitute legal, financial, or tax advice. Laws change — always verify with current state statutes and consult a licensed attorney. Read full disclaimer →