SD lawmakers reject bill limiting payday lending
PIERRE (AP) — A South Dakota legislative panel has rejected a measure that sought to put additional restrictions on short-term loans.
The House Commerce and Energy Committee voted 11-2 to defeat the bill after opponents said it was excessive.
Rep. Steve Hickey of Sioux Falls says he negotiated provisions of the bill with representatives of the payday lending industry who became alarmed after he suggested putting limits on interest rates charged for the short-term loans. Hickey says those lenders wound up opposing his bill, so he now will work to put an interest rate cap to a statewide vote on the 2016 ballot.
The bill wouldn't have limited interest rates. Instead, it would have imposed additional state regulations and limited the size of loans based on a borrower's ability to repay the debt.