Payday Loan Bill Dies In House
A bill backed by members of the payday loan industry has failed in the South Dakota House of Representatives.
Those supporting House Bill 1161 say it adds regulations to businesses that provide short term loans and protects consumers.
But opponents call the bill a smokescreen.
In committee supporters of House Bill 1161 included owners of payday loan companies and lobbyists for the industry. The bill survived a narrow vote to land on the House floor.
Proponents argue the bill is needed to regulate the industry and provide access to loans for those who have bad credit.
But opponents balk at this notion. State Representative Karen Soli is a pastor from Sioux Falls. She says some of those from out of state who are lobbying for this measure are using deceitful practices to garner support.
“This is a bill written and promoted by the payday title loan industry. It is designed to circumvent Initiated Measure 21 placed on our ballot this coming fall by thousands of real South Dakota citizens from all of our districts,” says Soli.
But some of those backing the measure countered the notion that lawmakers are taking away the voice of voters. Proponents of House Bill 1161 include Republican Party leader State Representative Brian Gosch.
“By us doing our job here in South Dakota in this body which we were elected to do, that’s not usurping anybody’s right. Ok. That’s just doing our job and deciding what good policy is. Ok, So, with that I would offer my support for House Bill 1161,” says Gosch.
A majority of House members disagreed with Gosch. The measure died by a vote of 47 to 21.