User uShare Login | Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.

67° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options




[0] My Saved Articles
Back to all news


Find local businesses
on the KELO Pages!


Payday Lending Bill

February 17, 2014, 6:06 PM by Don Jorgensen

Payday Lending Bill

If you've ever taken out a payday lending loan, you know they can sometimes be hard to payoff because of the high interest rates that are attached to them.  Now one South Dakota lawmaker wants to put some restrictions on such loans to help working families and the poor from being trapped in what he calls "a crippling cycle of debt."

Payday loan companies claim to help families who struggle with money, but some say they make a bad financial situation even worse.

A bill sponsored by State Representative Steve Hickey wouldn't limit the interest rate, but instead the amount of the loan.  He says many states have shutdown payday practices, but his bill won't.

"My bill allows them to stay in the state prospering, but it makes them behave.  It regulates the industry," Hickey said.

Under the bill, the most anyone could borrow from a payday lender is $700 or 25 percent of their gross monthly income, whichever is less.

The bill also creates a statewide database to track people taking out multiple loans.

"If you take out a loan, it goes into a system and says whether you can take out a loan. Do you have the money? Do you make enough to pay it back? Simple 101 lending types of things are in the bill that this industry presently doesn't abide by," Hickey said.

Chuck Brennan, who owns the Dollar Loan Center, is opposed to the bill.

"The bill is not good for South Dakota and there's not a problem with payday lending in South Dakota," Brennan said.

He also objects to the database.

"I don't know that people want every other loan company knowing they have money out; it's kind of a private issue in the first place," Brennan said.

Brennan says the bill is unnecessary.

"There's not a rash of complaints anywhere.  As a matter a fact, by checking up with the Financial Division of South Dakota, in the last year there were less than 24 complaints statewide and we are talking tens of thousands of customers," Brennan said.

The House Commerce and Energy Committee will hold a hearing on the measure Wednesday.

Previous Story

Next Story


Find Local Businesses on KELO Pages!

View business

You may also like

Walmart Grand Opening In Northern Sioux Falls

8/13/2014 6:03 PM

Northwestern Sioux Falls and the surrounding communities have a new shopping option

Full Story | Watch
New Manufacturing Plant For Sioux Falls

8/13/2014 11:45 AM

A Sioux Falls company that manufactures commercial grain equipment will build a new 120,000 square foot factory in Jansmick Industrial Park in Sioux F...

Full Story
Sioux Falls To Get Burlington Coat Factory

8/14/2014 1:45 PM

It's a deal that's been in the works for more than a year.  Now Lloyd Companies has submitted plans for a new Burlington Coat Factory sto...

Full Story
Toy Store to Open Second Location At Dawley Farm Village

8/14/2014 3:50 PM

A Sioux Falls toy store is opening a second location at Dawley Farm Village.

Full Story
SF Food Scene Gets Some National Attention

8/15/2014 8:14 PM

Sioux Falls' local flavor is getting national attention.

Full Story