SIOUX FALLS, S.D. — South Dakota banking regulators are allowing Dollar Loan Center to collect on loans made before South Dakota voters capped interest rates last year.
An attorney for the company said last week that the state Division of Banking may have forgiven Dollar Loan Center debts in South Dakota when it revoked the company’s lending license.
The Argus Leader reports that Division of Banking Director Bret Afdahl has signed a “limited stay” allowing the company to collect old debts as long as it provides information to the state.
Dollar Loan Center sued last month, arguing the agency violated its rights by revoking its license without a proper hearing. The division revoked the license after Dollar Loan Center started offering a loan product that the agency said violated state law.
Information from: Argus Leader, http://www.argusleader.com