Short-Term Lender Gives $1.7M for Interest Rate Amendment

PIERRE, S.D. (AP) — A Georgia lending company has contributed roughly $1.7 million to a South Dakota political organization pursuing a constitutional amendment that opponents say is an industry-backed measure meant to dupe voters.

Campaign finance documents released this week show the financial connection between the amendment campaign and the short-term lending industry.

Alpharetta-based Select Management Resources has car title loan locations in South Dakota.

The proposal being pushed by South Dakotans for Fair Lending would cap rates at 18 percent annually unless the borrower agrees to a higher one in writing.

Payday loan opponents argue the amendment would actually put an unlimited interest rate loophole into the South Dakota Constitution.

The amendment group's chairwoman didn't immediately respond to requests for comment.

A separate group is trying to cap interest rates at 36 percent.