36% rate cap on payday loans – Dakota Free Press

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Citizens of South Dakota demanded Measure 21 initiated to prevent payday lenders from taking advantage of customers with triple-digit interest rates. IM 21 is sponsored by former Republican lawmaker Reverend Steve Hickey, former Democratic consultant and now cafe owner Steve Hildebrand, and economics professor Reynold Nesiba.

Key provisions:

  1. IM 21 caps all loan charges, including interest, fees and all other charges, at an annual rate of 36%.
  2. This 36% cap only applies to loans from payday and securities lenders, not traditional banks and credit unions.

Click for full text: Measure initiated 21, “A measure initiated to set a maximum financial charge for certain approved lenders.”

Read more:

  1. Lee Strubinger, “Launch of Measure 21 caps South Dakota interest rate at 36%», Radio SDPB, 2016.09.02.
  2. Liz Farmer,Like the industry, payday loan ballots mislead voters“, Governing2016.08.24.
  3. Ken Santema, “A Look at Initiated Measure 21, 36% Cap for Payday Lenders“, SoDakLiberty2016.08.09.
  4. Jean Tsitrian,Wage limits could kill the industry“, Quick Town Diary2016.06.22.
  5. Presentation Sisters Justice Commission: Sisters Gabriella Crowley, Kathleen Bierne and Pat Prunty, “Why cap interest rates on payday loans at 36%?Presentation Sisters website, 2016-02-15.
  6. Articles on predatory lending of the Balloting Committee IM 21 South Dakotans for Responsible Lending
  7. Dakota Free Press coverage of the measure initiated 21
  8. Sioux Falls Area Chamber of Commerce briefing note on measures relating to the vote on payday loansAugust 2016
  9. CA Heidelberger,Payday lenders plan to trap customers in a cycle of abusive debt“, Dakota Free Press2015.06.13
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