Study Finds S.D. Has Some of Highest Payday Loan Costs

April 16, 2014
Argus Leader (SD) 
payday lending news
Three dozen U.S. states allow payday loans -- the most costly of which are found in Idaho, Texas, Ohio, and South Dakota, according to the Pew Charitable Trusts. In South Dakota, where there is no limit on how much payday lenders can charge borrowers, the average annual interest is 574 percent. That compares to an APR of 129 percent -- the nation's lowest -- in Colorado.

While states with low rate ceilings -- or no interest cap at all -- typically are home to more payday loan stores per capita, states with lower limits still do plenty of business, according to the report. The fewer stores simply lend to more customers each.

Pew also found that companies active in more than one state charge significantly different prices depending on location, sometimes collecting double the interest in one state compared to what they collect in another.

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