{"id":376326,"date":"2016-03-31T21:36:45","date_gmt":"2016-04-01T02:36:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/south-dakota-law\/south-dakota-interest-rates-laws.html"},"modified":"2016-06-20T23:00:00","modified_gmt":"2016-06-21T04:00:00","slug":"south-dakota-interest-rates-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/south-dakota-law\/south-dakota-interest-rates-laws.html","title":{"rendered":"South Dakota Interest Rates Laws"},"content":{"rendered":"\n
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South Dakota Interest Rates Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Regardless of statutory limits on interest rates<\/a>, consumers regularly agree to waive those limits and pay higher rates by clicking "I agree" online or signing a printed contract. Still, most states have so-called "usury" laws on the books, intended to prevent exorbitant rates.<\/p>\r\n

South Dakota interest rate laws generally defer to contract law<\/a>. One exception is a 12 percent limit on judgments. Generally speaking, South Dakota’s interest rate limit is 15 percent. Beyond this fact, there is no usury limitation<\/a> per se in the State of South Dakota.. There are some limitations on consumer loans below $5,000 when it comes to the manner in which they can be made and in regard to related matters. However, and again, there are no usury limitations per se.<\/p>\r\n

In addition to these regulations, there are separate provisions that deal with interest rates on loans from state chartered institutions including banks, savings and loans, and credit unions.<\/p>\r\n

How Do Creditors Get Around Statutory Interest Rate Limits?<\/h2>\r\n

Consumers may be required to pay higher interest rates<\/a> if agreeing to do so is a condition of getting a credit card<\/a> or loan. Additionally, depending on the terms of the contract, borrowers often agree to give credit card issuers the green light to raise rates at a later date. This may be a lengthy paper contract for a car loan or a simple click of the mouse when agreeing to the terms of a credit card application.<\/p>\r\n

The best way to avoid extremely high interest rates is to do your best to avoid credit card debt<\/a> in the first place. This is certainly easier said than done. Even if you do have credit debt, you still have some consumer protections under federal law<\/a> as a consumer. See Consumer Protection Resources<\/a> for more information.<\/p>\r\n\r\n
Statute<\/td>\r\n54-3-1.1<\/a><\/td>\r\n<\/tr>
Legal Maximum Rate of Interest<\/td>\r\nAbsent agreement, 15 percent (\u00a754-3-4)<\/td>\r\n<\/tr>
Penalty for Usury (Unlawful Interest Rate)<\/td>\r\nPenalties repealed July 1982<\/td>\r\n<\/tr>
Interest Rates on Judgments<\/td>\r\n12 percent (\u00a754-3-5.1)<\/td>\r\n<\/tr>
Exceptions<\/td>\r\nReal estate mortgages; Uniform Credit Code security agreements; revolving charge accounts (\u00a754-11-5); regulated lenders \u00a7(54-3-13)<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

Note: State laws are constantly changing — contact a South Dakota consumer protection attorney<\/a> or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\r\n

Research the Law:<\/h2>\r\n