Payday Loan in South Dakota
Legal Status: Permitted under small loan act or licensing law
Citation:
S.D. Codified Laws § 54-4-36 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Not Specified
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan: No Limit
APR for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Four (licensee can renew, rollover or flip loan if debtor pays outstanding fee each time)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: South Dakota Division of Banking
Address: 217 1/2 West Missouri Avenue Pierre SD 57501
Phone: (605) 773-3421
Fax: (605) 773-5367
Applicability: To lenders engaging in payday loans: any small, short-maturity loan on the security of a check, any assignment of an interest in the account of a person at a depository institution, any authorization to debit the person’s deposit account, or any assignment of salary or wages payable to a person. A short-maturity loan made in anticipation of an income tax refund is not a payday loan for purposes of this chapter.
Exemptions: Any state bank and its subsidiary; any national bank and its subsidiary; any bank holding company and its subsidiary; any other federally insured financial institution, its holding company and subsidiary; and any South Dakota chartered trust company.
Licensing requirements: Payday lenders must obtains licenses and obtain a $10k surety bond.
Loan terms: No payday loan disbursed by a licensee may exceed $500. A licensee may renew, rollover, or flip a payday loan no more than four times. No renewal, rollover, or flip is valid unless the debtor pays the outstanding fee at the time of the renewal.
Required disclosures: Loan contracts must disclose the amount and date of the loan; the amount of the down payment, if any; the dates any payments are due and the amount of payments; a list of any property used to secure the loan; any liens or title filings required; the method used to compute the charges; an explanation of the charges; any charge that may be applied for delinquency; the conditions for an extension of payment or maturity of the loan; and refinancing requirements.
Prohibited acts: No licensee may advertise any statement or representation, including rates, terms, or conditions for making or negotiating loans that is false, misleading, or deceptive, or that refers to the supervision of business by the state.
Enforcement: Director may issue cease and desist order, suspend or revoke a licensee’s license, enjoin a licensee for violations of these provisions.
Penalties: Violation of disclosure requirements is a class 2 misdemeanor. A violation of the limit on the amount a licensee may disburse is a Class 1 misdemeanor.
