If public officials aren’t tackling the matter of bad credit loan lending then the general public will. At least that’s the idea behind a couple of new petitions circulating across South Dakota that would change the way payday loan establishments conduct their business.
In South Dakota, bad credit loan lenders charge interest rates on average 574 percent. Also, The Mount Rushmore State is one of the states in the nation to not cap payday loan interest rates. This allows retail payday loan stores like Dollar Loan Center and online websites to make a killing of their borrowers. Indeed, there have been attempts to reform the industry with capping interest rates but they have failed.
One petition is seeking to cap interest rates at 36 percent and is being sponsored by South Dakotans for Responsible Lending.
Steve Hildebrand is co-chair of the bipartisan organization and he says that there is “great disdain” within the general public regarding high interest rates that payday loan lenders charge the poor, especially those who are desperate. Continue reading