South Dakota Bill Would Restrict Payday Loans, Cash Advances
The plethora of instant cash loan businesses that have seemingly popped up all over the place in South Dakota may be facing a new restriction.
The state Senate is scheduled to consider a measure today that would limit those lenders to one personal loan at a time of 500 dollars per person.
State legislators thought that was the law when they passed regulations earlier, but an audit found that some of the businesses were making several loans of 500 dollars to individuals.
The businesses argued that they thought the law said 500 dollars for each loan, no matter how many payday advance loans were provided.
The pending legislation would make it clear that each customer can have only one loan of 500 dollars from a single business.
Opponents say that’ll drive those people down the street to get a faxless cash advance from each small lender. The debate will likely continue for awhile.