Payday Lender Seeks Customer Help To Overturn Rate Cap
A major South Dakota payday lender is urging its customers to contact state officials and the media to help overturn a short-term loan rate cap.
The ballot measure approved by voters went into effect Wednesday.
Dollar Loan Center, which has 10 locations in South Dakota, said in a post on its website that no short-term lender in the state will be able to offer loans under the new cap.
Lenders argued during the campaign that the measure would end the industry in South Dakota. The law limits interest rates charged by businesses such as payday, auto title and installment lenders to 36 percent annually.
Dollar Loan Center says its offices will stay open to service existing loans. The company says it will continue lending money if the measure is overturned.