South Dakota Payday Loans

S.D. Codified Laws 54-4-36 et seq.
Status: Permitted under small loan act or licensing law

Payday loans are legal in the state of South Dakota, pursuant to S.D. Codified Laws 54-4-36 et seq. There are approximately 108 companies offering payday loan services in the state.

Payday Loan Lending Laws in South Dakota

The primary feature of payday loan regulations in South Dakota is the lack of specifications on what is allowed. A license is required to offer payday loan services in South Dakota, but state laws are not very clear about the licensing requirements for companies operating businesses through the internet. While a borrower can request a maximum loan amount of $500, little else is clearly defined by state law. There are no specifications regarding collections, repayment plans, interest rates, finance charges, the repayment period, or the maximum number of loans that can be issued to a single borrower at one time. Additionally, there are no specifications on collections fees or criminal actions against a delinquent borrower. A total of four rollovers are permitted, and a lender can renew, rollover, or flip the loan if the borrower pays the outstanding fee.

Lacking details on so many factors, a potential borrower in South Dakota needs to exercise extreme caution when considering the use of payday loans. In many regards, South Dakota stands as the best example of the best and worst uses of payday loans. Although a borrower can take out $500 on one loan, there are no regulations prohibiting the borrower from taking out another $500 loan with a different lender. While a borrower might be tempted to take out one loan and seek another loan to repay the first, the lack of specifications on the repayment time frame can trap irresponsible borrowers into a debt cycle.

To avoid this, a borrower needs to respect how cash advance loans work before using them. Ideally, this means a borrower should take the time to understand the payday loan terms offered by a lender, specifically the collection fees, finance rates, the APR, interest rates, finance charges, and the time period to repay the loan. They should also check with the lender about any rollover/renewal options and if a repayment plan is offered. Given the relative ease of access with short term loans, however, the temptation to act irresponsibly with the loans can be great. It is therefore advisable for potential borrowers to consider every available financial option at their disposal before committing to a payday loan.

Lending Rules*

Lenders in the state of South Dakota are legally required to comply by the following limitations according to S.D. Codified Laws 54-4-36 et seq.:

Maximum Loan Amount:
$500
Minimum Length of Loan:
Not specified
Maximum Length of Loan:
Not specified
Maximum Finance Rate & Fees:
Not Specified
Finance Charge for 14-day $100 Loan:
No Limit
APR for 14-day $100 Loan:
No Limit
Max # Outstanding Loans at One Time:
Not Specified
Rollovers Permitted:
Four (licensee can renew, rollover or flip loan if debtor pays outstanding fee each time)
Collection Fees:
Not Specified
Criminal Action:
Not Specified
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/49.

Regulatory Information

If you have a complaint against a South Dakota Cash Advance location you can contact your state regulator below:

Regulator:
South Dakota Division of Banking
Address:
1601 N. Harrison Ave., Suite 1
Phone:
(605) 773-3421
Fax:
(866) 326-7504
Website:


South Dakota Lenders

Below you can find South Dakota payday loan lenders in the following cities:

South Dakota Statistics**

The following information is key demographic data for the state of South Dakota from the Census bureau.

Total Population:
865,454
Median Household Income:
$50,957
Poverty Rate:
13.7%
Median Gross Rent:
$655
High School Graduate or Higher:
90.9%
Bachelor's Degree or Higher:
27.0%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

As stated above, the lack of defined specifications on collections, repayment plans, interest rates, finance charges, the repayment period, or the maximum number of loans in the state of South Dakota should give a potential borrower added incentive to understand everything they can about the lender’s terms before agreeing to the loan. Payday loans are, by design, best used to deal with unexpected and short-term financial situations when time and emergency require the immediate use of funds. They should not be used to address long-term financial plans, and the lack of defined regulations on so many loan details in South Dakota should discourage a borrower from acting irresponsibly with cash advance loans. But by respecting the details and planning ahead, payday loans can be an effective answer for these problems.

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