An AARP poll in South Dakota shows that most people over 50 want the state to limit the amount payday lenders can charge. The membership organization paid for the Alan Newman Research survey. The poll results date back to late September and early this month.
Phone calls to 904 older South Dakota residents show many agree that the law should cap the interest that payday lenders and auto title lenders charge customers. Sarah Jennings is the State Director of AARP South Dakota.
“South Dakota people 50 and over think we need to cap the interest rate on payday loans. the 50+ in our state of South Dakota who think we need to take action on this problem, ”Jennings said.
The survey has a sampling error of between +/- 3.7 percent and +/- 5.4 percent.
AARP South Dakota is part of a coalition that is circulating petitions to put payday loan rates to a public vote. Jennings says the organization commissioned the survey to find out what people think.
“The exact wording of the question was:” To what extent do you agree or disagree with South Dakota law being amended to cap the interest rates and fees that lending companies on? salary and auto title can charge borrowers at 36%? Do you: strongly agree, somewhat agree, somewhat disagree, strongly disagree, don’t know or refuse to answer? ‘ Jennings said.
Supporters of the vote – and rate caps – say lenders take advantage of desperate people who are vulnerable and find themselves caught in a cycle of debt.
Payday lenders say they are providing a service to people who cannot get loans elsewhere because lending to them is very risky. They say that the interest rate cap would ruin the industry.
Jennings says survey participants were not limited to AARP members, and they span a variety of education, income, gender, marital status, race and political ideologies. .