South Dakota Payday Loan Law Stopped Cold
A South Dakota House committee rejected a proposal to impose a maximum fee of 36% APR and increase South Dakota payday loan licensing fees to $5000.
A Republican – no less, Rep. Steve Hickey of Sioux Falls, sponsored two bills aimed at payday loan lenders.
Luckily for residents of South Dakota, the legislators understand that many payday loan consumers have no other choice. Banks don’t make small, non-collateralized loans and credit card companies are reducing available credit to the payday loan demographic. See: What’s ALICE Got to Do With Payday Loan Demographics.
South Dakota Rep. Steve Hickey would not only deprive his constituents of choices in solving their financial challenges, but additionally, put more companies, employees and landlords out of business!
South Dakota payday loan lenders clearly display, in large fonts, their fees, charges and sample APR’s.
South Dakota residents freely choose to use the payday loan product. If they don’t think a payday loan makes sense for them, they’ll stop using them… and payday loans will go the way of the buggy whip!
Get out of the way Rep. Hickey. Let private enterprise create more, higher paying jobs. That will reduce the number of South Dakota residents who need to turn to payday loans in the first place. I bet with fewer customers, South Dakota payday loan companies will be forced to reduce their rates or leave the state.