Daugaard Votes For Measure To Cap Payday Loan Interest Rates
Republican Gov. Dennis Daugaard has voted for a ballot measure that would limit the interest rates that short-term lenders can charge in South Dakota.
The governor said Monday that he thinks the state has a role to play in protecting consumers. But Daugaard says he doesn’t have strong feelings about the measure.
The initiative would cap interest rates charged by businesses such as payday, auto title and installment lenders licensed in South Dakota to 36 percent annually.
Lenders argue that the cap would destroy the industry. Opponent advertising has attacked the proposal as a liberal-backed assault on freedom.
Daugaard voted against a competing measure funded by a Georgia-based title lender that would amend the state constitution to let lenders charge any interest rate that a borrower agrees to in writing.