SIOUX FALLS, S.D. (KELO AM) -Organizers of the successful effort to cap payday loans at 36% say the law will take effect January first.
Reynold Nesiba with South Dakotans for Responsible Lending says that industry in South Dakota will find it difficult to stay open with out charging interest between 300 and 600 percent.
Nesiba says it is his understanding that the Dollar Loan Center, here in Sioux Falls, that that couple block area, where 10th Street turns into 12th just east of Menlo Avenue, "that,that two block area is for sale as well."
Nesiba says payday lenders spent $3 million on their campaign while his group spent $70,000.
He says South Dakota will become the fifteenth state, plus the District of Columbia, to rein in "predatory lending by passing an annual interest rate cap on payday, car title and installment loans at around 36%."
Nesiba says studies show that working families are better off in states that have gotten payday lending under control. Meaning fewer unpaid bills, fewer bankruptcies and fewer closed bank accounts.
