South Dakota Went Too Far in Punishing Payday Lender, Court Says

A federal judge in South Dakota on May 29 blasted the state banking regulator for revoking one of the state’s largest payday lenders’ operating license after the imposition of a ban on those short-term, high interest loans last year.

Judge Roberto A. Lange of the U.S. District Court for the District of South Dakota said in a 41-page ruling that South Dakota Division of Banking Director Bret Afdahl exceeded his authority when he revoked Dollar Loan Center Ltd.’s operating license in September 2017. Afdahl determined that late fees applied to a new loan product Dollar Loan Center introduced after South ...