Opponents Challenge Plan to Cap Payday Loan Interest Rates

PIERRE, S.D. (AP) — Opponents of a ballot measure that would cap payday loan interest rates in South Dakota are challenging signatures turned in to get it on the 2016 ballot.

Secretary of State Shantel Krebs said Thursday that her office will verify the challenge in the coming months.

It objects to more than 7,600 signatures that supporters submitted to Krebs' office for the interest rate measure.

The office looks at signatures and petition completeness as part of its review.

Officials determined that about 17,200 signatures were valid, which was above the roughly 13,900-signature threshold.

The proposal would limit interest rates from money lenders licensed in South Dakota to 36 percent annually. Supporters say the proposal is aimed at protecting consumers from predatory lending.

Opponents argue short-term lenders would be forced out of business.

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