"Are there plans to revisit limits on the excessive interest charged by
'pay day lenders' and other financial institutions in South Dakota?"
Only Sen. Shantel Krebs attempted to answer, and she wound up saying that efforts to restrict interest would be "starting to mess with an industry that employs a lot of people in South Dakota."
"Pay Day" loans are short term but can be rolled over for more than one cycle. Their actual interest rates are as high as 900%.
"Internet payday loans cost up to $30 per $100 borrowed and must be repaid or refinanced by the borrower's next payday," said Jean Ann Fox, CFA's director of consumer protection. "If payday is in two weeks, a $500 loan costs $150, and $650 will be electronically withdrawn from the borrower's checking account."