Federal rules designed to protect consumers have driven one of the top employers in the Northern Hills community of South Dakota out of business, according to Premier Bankcard officials.
Premier’s call center, which has been operating in Spearfish, South Dakota, for the last 10 years and employed 330 people, was a casualty of the 2009 Credit Card Accountability, Responsibility and Disclosure Act, SiouxFallsBusinessJournal.com reports.
Premier specializes in providing cards with high fees to customers with low credit scores. The Credit Card Act ultimately capped the fees that companies are allowed to charge customers with low credit.
The Department of Labor has offered a $400,000 grant to help 200 of the people who lost their jobs. The grant is intended to provide training and employment services.
Brian Walker, the executive director of economic development in Spearfish, said that his office is working to try and attract another large employer to the area, KotaRadio.com reports.
“There is no doubt about it, the loss of Premier Bankcard will be a huge impact on our local economy," Walker said, BHPioneer.com reports. "Based on past numbers, I would estimate that the loss of 330 jobs at Premier Bankcard will result in loss of between 10-11 million dollars in local payroll."