Voters in South Dakota have approved an initiated measure to cap interest rates on short-term, so called “payday” loans.
About 75% of voters approved Measure 21 to cap interest rates on payday and car title loans at 36%.
A competing measure, Amendment U, looks likely to fail, with 60% of votes against it.
Opponents of Measure 21 warned if it was passed, it could put an end to the payday loan industry in South Dakota. Supporters say payday lenders hand out predatory loans targeted at the poor.
Voters in South Dakota also shot down a measure that would have lowered the state’s minimum wage for teens.
Referred Law 20 would have established a youth minimum wage of $7.50 an hour for workers under 18. South Dakota businesses will have to keep paying young workers the state’s minimum wage of $8.55 an hour.