South Dakota

In South Dakota, payday loan laws are established under the Senate SB 151 Bill. Like many states, South Dakota does not permit any payday lending without acquiring a license from the Division of Banking. The application that's submitted must contain the name of the applicant's business, proof of surety bond, address of the business, and other required information.

Before a payday lender in South Dakota disperses funds, they must give the customer a notice with clear and conspicuous statements that indicate the following:

• A payday loan is not intended to meet long-term financial needs.
• You should only use a payday loan to meet short-term cash needs.
• You will be required to pay additional fees if the payday loan is renewed rather than paid in full when due.
• schedule of fees charged.
• Any information required under federal law.

The maximum amount of money that a payday loan lender in South Dakota can disperse at one time is $500. Any violation of this law is a Class 1 misdemeanor. A payday loan lender in South Dakota cannot lend to anyone with outstanding loan balances of $500 or more. Renewals on loans are not allowed unless the borrower pays any outstanding fees first.

The written agreement must authorize the lender to defer the check for a specified amount of time. By law, borrowers in South Dakota can void a loan transaction, but they have to do it by the day after the initial transaction. Any violation of this law is considered a class 1 misdemeanor.

Currently South Dakota does not have any cap laws on fees. Therefore, a payday lender can charge whatever amount they want.