AFSA Submits Comment Requesting Clarification on South Dakota Initiated Measure 21 November 16, 2016 On November 16, AFSA submitted a comment letter to the South Dakota Division of Banking requesting the Division confirm that Initiated Measure 21 would not apply to retail installment contracts and requesting clarification on calculation of the measure’s 36 percent all-in rate cap. Initiated Measure 21 was approved by South Dakota voters on November 8 and became effective November 16, following the Secretary of State’s official canvas. AFSA members raised concerns and questions about the Measure’s application to retail installment contracts and the inclusion of ancillary products in the calculation of the finance charge. AFSA’s comment noted that retail installment sales are not loans and are governed separately under South Dakota law. The comment also asked the state to confirm that voluntary ancillary products also available in cash transactions are not incident to the extension of credit and should not be subject to inclusion in the finance charge and the rate cap. AFSA will keep members apprised of any response from the state clarifying the impact of the Measure.