The South Dakota Division of Insurance is investigating whether Dollar Loan Center's new one-week loans violate state law.
Dawn Dovre, a spokeswoman for the division, on Monday said the agency is probing the new loans offered in Sioux Falls and Rapid City.
South Dakota voters approved a ballot measure in November capping annual interest rates at 36 percent. Payday lenders previously charged as much 400 percent, and most shuttered their stores following the change, citing inoperable conditions.
In January, Dollar Loan Center closed its 10 stores in South Dakota, but the chain quietly reopened two of its stores last week. The company began offering one-week loans between $250 and $1,000 at annual interest rates below the 36 percent cap.
Read more:
http://www.argusleader.com/story/news/politics/2017/07/10/back-business-dollar-loan-center-under-state-investigation/464338001/
