House Committee Passes Pay Day Lending Bill

MoneyThe House State Affairs committee passes a bill that would negate an inititated measure that will be on this November’s ballot. Initiated Measure 21 would cap “pay day” interest rates at 36-percent, a move the industry says would put them out of business in South Dakota. House Bill 1161 is backed by the short-term loan industry and would allow them to continue offering loans at whatever rate they choose. Brett Koeneke is a lobbyist for the industry and spoke in favor of the bill…

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Eric Nelson is a lobbyist for A-A-R-P South Dakota and testified against the bill. He says this industry preys on low-income people…

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Representative Spence Hawley of Brookings says he’s not exactly sure what this long and complicated bill would do…

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The measure passed on an eight to five vote and now moves to the House Floor.