Voters to decide South Dakota payday loan industry's fate

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  • In this Friday, Sept. 30, 2016, photo, Sabrina Kastur talks about her payday loan shortly after making a payment in Sioux Falls, S.D. Short-term lenders say the passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota. Kastur said that short-term lenders are taking advantage of desperate people and that she’s done with them. (AP Photo/James Nord)

    In this Friday, Sept. 30, 2016, photo, Sabrina Kastur talks about her payday loan shortly after making a payment in Sioux Falls, S.D. Short-term lenders say the passage of a ballot measure capping payday loan interest rates would destroy the industry ... in South Dakota. Kastur said that short-term lenders are taking advantage of desperate people and that she’s done with them. (AP Photo/James Nord) (The Associated Press)

  • In this Wednesday, Oct. 12, 2016, photo, Cathy Brechtelsbauer, a supporter of a ballot measure that would cap short-term lenders' interest rates in South Dakota, decorates a pumpkin for the campaign in Sioux Falls, S.D. Short-term lenders say the passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota. (AP Photo/James Nord)

    In this Wednesday, Oct. 12, 2016, photo, Cathy Brechtelsbauer, a supporter of a ballot measure that would cap short-term lenders' interest rates in South Dakota, decorates a pumpkin for the campaign in Sioux Falls, S.D. Short-term lenders say the ... passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota. (AP Photo/James Nord) (The Associated Press)

  • In this Wednesday, Oct. 12, 2016, photo, Cathy Brechtelsbauer, a supporter of a ballot measure that would cap short-term lenders' interest rates in South Dakota, discusses decorating pumpkins for the campaign in Sioux Falls, S.D. Short-term lenders say the passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota. (AP Photo/James Nord)

    In this Wednesday, Oct. 12, 2016, photo, Cathy Brechtelsbauer, a supporter of a ballot measure that would cap short-term lenders' interest rates in South Dakota, discusses decorating pumpkins for the campaign in Sioux Falls, S.D. Short-term lenders ... say the passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota. (AP Photo/James Nord) (The Associated Press)

Short-term lenders say the passage of a ballot measure capping payday loan interest rates would destroy the industry in South Dakota.

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That's how a recent rate cap initiative played out in Montana. State figures show regulated short-term lenders plummeted from over 100 to none within several years of its 2010 approval.

Lending companies argue that they provide consumers with important access to short-term credit.

Ballot measure supporters say people have options for help other than a snare engineered to profit off the poor.

A 2014 Pew Charitable Trusts report says the average annual percentage rate charged for a payday loan in South Dakota is 574 percent. The ballot measure would cap interest rates for products such as payday loans at 36 percent annually.