Strong Bipartisan Support for 36% Payday Lending Cap by South Dakota Voters Should Encourage Reform Across Nation
On November 8, 75% of South Dakota voters approved reducing the cost of payday loans from 574% to 36% annually. At the same time, a significant majority of South Dakotans rejected the payday lenders' proposal to allow permanent unlimited rates. The rate cap ballot measure approved by South Dakota voters will cap the annual interest rates at 36% for payday, car title, and installment loans. The voters' decision aligns South Dakota with protections already in place for active-duty military nationwide, and makes South Dakota the 15th state to prevent the harms of high-cost debt trap loans. Center