PIERRE, S.D. (AP/KEVN TV) – The South Dakota Division of Banking has issued “cease and desist” orders to several loan centers across the state.
Thursday, the division shut down Cash N Go Pawn in Rapid City and Sioux Falls. The company, according to the banking division, was making pawn loans using payroll deductions/wage assignments in addition to traditional pawn loans based upon items of personal property left with the company.
Wednesday, banking regulators have revoked the lending license for the Dollar Loan Center stores in Sioux Falls and Rapid City.
The stores were shut down after regulators say they learned the short-term loan company was charging 36 percent interest and charging late fees if loans were not repaid in a week.
In an Associated Press story, banking 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.”
South Dakota voters last year approved a ballot measure to ban payday and short-term, high interest loan businesses. That forced Dollar Loan Center out of business temporarily. The company reopened in July.
The Argus Leader reports owner Chuck Brennan says he's pursuing “available legal remedies.''