Cash Advance in South Dakota

Posted on Saturday, June 19th, 2010 at 1:02 pm in Cash Advances, State Loan Info

The state of South Dakota’s requires that payday lenders adhere to the state’s small loan act. South Dakota is in many ways, an amalgam of payday loan laws and regulations from other states. Each individual regulation appears in another states series of payday loan regulations. Before giving any funds to a borrower, a payday lender must provide them with a statement stating that cash advances are meant for short term financial emergencies and not long term financial needs. The notice also explains a schedule of fees and that if the borrower does not pay the loan at the end of the term, they will be charged additional fees.

There is no limit to the APR a lender may charge and there is no limit to the term of the loan. Payday lenders are also required to register their business with South Dakota’s division of banking, providing them with information such as the name of the business and the address of the business. Much of the regulations are standard for the payday loan industry. Most states that allow payday loans or some form of small loans will require the business to register and divulge the name of the business, as well as a physical address. Payday lenders in South Dakota are also not allowed to approve a loan for a borrower who already has an outstanding loan balance of $500 or more.

Sources: www.paydayloanlaws.com     http://www.credit.com/credit_information/credit_law/PaydayLoanLaws.jsp

Related posts:

1. State Cash Advance Laws
2. Cash Advance State Articles
3. State Cash Advance Regulations
4. Cash Advance APRs