South Dakota payday loan regulators are considering implementing new laws. South Dakota Rep. Steve Hickey introduced new legislation that many payday loan sharks are finding hard to swallow.
South Dakota payday law places a limit of $500 on a short-term loan. Hickey’s bill would change that to $700, but the loan could not exceed 25 percent of the borrower’s gross monthly income.
The proposed law would limit loan renewals or rollovers, enable borrowers to cancel a loan within 24 hours of making a loan, allow payment plans with no additional fees and require lenders to provide information on loans to the state Banking Commission.
Rep. Hickey made it clear that if lenders making payday loans to residents of South Dakota don’t embrace his bill, he’ll push hard for a 36% cap on all lending in his state.