Carleton, Inc.
Consumer Lending Software

Compliance Alert South Dakota (Updated) - 3/16/2017


The following information is presented by the Carleton Research Department.  In order to keep our customers abreast of what is happening in the consumer credit and credit insurance industries, the following law changes have been compiled for your review.  Please check to see if any of the listed changes will impact your operations.

*The content of this alert is intended to convey general information only and not to provide legal advice or opinions. 


On March 13, Governor Daugaard signed House Bill 1090, providing relief for indirect lenders with retail installment contracts from the requirements of IM 21, which passed by referendum in November of 2016. 

IM 21 intended to impose a 36% APR cap on loan business. But licensing quirks in South Dakota made assignees potentially subject to same 36% cap.  The measure’s provisions created an environment where fees and taxes generally excluded from the state finance charge would be included.

Under HB 1090:

The bill is effective July 1, 2017.  It is not yet clear if or how contracts engaged in between November 16, 2016 and July 1, 2017 will be effected in relation to the requirements of IM 21.

Posted on Mar 21, 2017