Two out of ten ballot measures up for vote in South Dakota deal with interest rates. Constitutional Amendment U establishes an 18 percent cap on interest rates in the state.
But there’s a catch.
According to the Attorney General’s explanation, if constitutional amendment U is passed any agreement with a lender may not charge more than 18 percent interest per year. That is if it’s a verbal agreement.
According to Consumer Credit Counseling of the Black Hills, if a loan isn’t agreed to in writing, it didn’t happen.