Payday Loan Times

Payday loans should be part of a state government review, a Deadwood lawmaker says.

Republican Rep. Chuck Turbiville made that recommendation Tuesday as an interim committee began a review of the state Department of Revenue and Regulation.

“There’s been a lot in the news about the [online payday loan] rates being charged,” Turbiville said. “Could we get some indication what might be done to regulate, cap, reduce those rates without driving away those credit card companies that came to South Dakota mainly because we do not have any regulation of that?”

Payday loan is a generic term for a relatively short-length, high-interest personal loan. Loans generally run about 30 days, and interest rates can be in triple digits. Lawmakers have made several attempts to regulate the industry in recent years, but a Wall lawmaker said the review process is a chance to see whether more needs to be done.

“A lot of work has been done on that, but the question is, ‘Have we gone far enough?’ ” Republican Rep. Gordon Pederson said.

Paul Kinsman, secretary of the Department of Revenue and Regulation, said his agency would welcome legislative input on that and other issues related to pay day loans.

“The department would be very interested in working with this group to come up with some kind of solution or at least a plan of action with how we’re supported to deal with [fast cash loans],” Kinsman said.

The legislative committee’s review is part of an ongoing attempt to study the workings of each major agency of the executive branch.