The Dollar Loan Centers in Rapid City and Sioux Falls will not be able to issue any more loans.
The South Dakota Division of Banking has issued a cease and desist order, along with an order to revoke all money lending licenses held by the center.
“Dollar Loan Center has made every effort to work with the State of South Dakota regarding the loan product it rolled out in July of 2017. DLC disagrees with the Division of Banking’s decision and will pursue its available legal remedies regarding the decision, but will not be commenting further at this time. Thank you for your interest and continued support,” Chuck Brennan with Dollar Loan Center said.
South Dakota Division of Banking Director Bret Afdahl says it’s because Dollar Loan is doing lending practices in violation of the state’s money lending laws.
The company was offering short-term loans at 36 percent APR and charging late fees if not repaid in one week.