PIERRE, S.D. (AP) Short-term lenders in South Dakota will be reined in beginning tomorrow by a new state law forbidding them from making multiple loans to customers.

South Dakota is one of several states that have passed laws dealing with so-called payday lenders firms that offer quick-cash loans and charge high interest rates.

Representative Joni Cutler of Sioux Falls was the prime sponsor of a measure in the 2007 Legislature that clarifies a regulation on payday lenders.

A state audit found that some of the businesses were making multiple loans of 500 dollars to individuals.

Cutler's legislation makes it clear that each customer can have only one loan of 500 dollars from a single business.

(By AP Writer Joe Kafka) (Copyright 2007 by The Associated Press. All Rights Reserved.) APNP 06-30-07 0919CDT | save this article / add to your favorites list