Legislator wants a review of payday loans
Posted: Thursday, July 19, 2007
PIERRE, S.D. (AP) -- A state lawmaker recommended including payday loans in a legislative review of the state Department of Revenue and Regulation.
"There's been a lot in the news about the rates being charged," Rep. Chuck Turbiville, R-Deadwood, said Tuesday.
"Could we get some indication what might be done to regulate, cap, reduce those rates without driving away those credit card companies that came to South Dakota mainly because we do not have any regulation of that?"
Payday loan is a generic term for a relatively short-term, high-interest loan. Lawmakers have made several attempts to regulate the industry in recent years, but a Wall lawmaker said the review process is a chance to see whether more needs to be done.
"A lot of work has been done on that, but the question is, 'Have we gone far enough?"' Republican Rep. Gordon Pederson said.
Paul Kinsman, secretary of the Department of Revenue and Regulation, said his agency would welcome legislative input on that and other issues.
"The department would be very interested in working with this group to come up with some kind of solution or at least a plan of action with how we're supposed to deal with this," Kinsman said.
The review by the interim legislative committee is part of an ongoing attempt to study the workings of each major agency of state government.
"There's been a lot in the news about the rates being charged," Rep. Chuck Turbiville, R-Deadwood, said Tuesday.
"Could we get some indication what might be done to regulate, cap, reduce those rates without driving away those credit card companies that came to South Dakota mainly because we do not have any regulation of that?"
Payday loan is a generic term for a relatively short-term, high-interest loan. Lawmakers have made several attempts to regulate the industry in recent years, but a Wall lawmaker said the review process is a chance to see whether more needs to be done.
"A lot of work has been done on that, but the question is, 'Have we gone far enough?"' Republican Rep. Gordon Pederson said.
Paul Kinsman, secretary of the Department of Revenue and Regulation, said his agency would welcome legislative input on that and other issues.
"The department would be very interested in working with this group to come up with some kind of solution or at least a plan of action with how we're supposed to deal with this," Kinsman said.
The review by the interim legislative committee is part of an ongoing attempt to study the workings of each major agency of state government.
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Jeff wrote on Jul 20, 2007 9:12 AM: