When Dollar Loan Center reopened in Sioux Falls and Rapid City in July to offer shady one-week loans, I was worried that payday predator Chuck Brennan was exploiting a new Legislative loophole in the 36% interest rate cap that we voters slam-dunkingly approved last November. My worries were apparently unfounded.
The South Dakota Division of Banking announced yesterday that it is shutting down Dollar Loan Center:
Director Bret Afdahl said, “Based upon a recent examination of Dollar Loan Center, the Division of Banking issued a cease and desist order and order to revoke all money lending licenses held by Dollar Loan Center due to lending practices in violation of South Dakota money lending laws” [SD Division of Banking, press release, 2017.09.13].
The Division of Banking has thus far providing no details on the legal analysis supporting this revocation. The division’s list of lending licenses as of September 1 showed five licenses held by Dollar Loan Center South Dakota LLC: two held in Sioux Falls and Rapid City since July 2010 and three issued for sites in Sioux Falls, Watertown, and Aberdeen in June 2017; like all current lending licenses, those five were to expire at the end of this year.
Brennan says his company “disagrees with the Division of Banking’s decision and will pursue its available legal remedies….” The folks who brought us the 36% rate cap and helped push Brennan’s predatory lending out of South Dakota are promoting an event discussing the rate cap and lending options. “Life After 36%: A Faith-Based Response to the New Lending Crisis” happens Thursday, September 28, at 7 p.m. at the former Life Church Building at 1117 West 11th Street:
This event will feature Dr. Nathan Hitchcock, professor of church history and theology at Sioux Falls Seminary, who will present a biblically informed perspective on lending. In addition, Sara Nelson-Pallmeyer of Exodus Lending, a Minneapolis non-profit that lends money at no interest caught up in payday loans, will share the blueprints for building a viable payday loan alternative. Attendees will hear a legislative update and receive relevant resources to be part of the next chapter in the drive for fair lending [Facebook event page, downloaded 2017.09.14].
Notice the difference: the 36% rate cap sponsors stick around in South Dakota and help folks find solutions, while Chuck Brennan throws a snit-fit, then tries to skirt the law.