Actions

Nebraska voters approve interest rate cap on payday lenders

money
Posted at 9:57 PM, Nov 03, 2020
and last updated 2020-11-03 23:14:10-05

OMAHA, Neb. (AP) — Nebraska voters have overwhelmingly approved a measure to cap the annual interest rate on payday loans at 36%.

The measure changes existing state law, which allows lenders to charge more than 400% annually. Supporters of the measure argued that such high rates victimize low-income borrowers and those who do not understand lending requirements.

Industry officials countered that the high rates are misleading because most loans are short-term and that capping the interest rate will put lenders out of business.

Download our apps today for all of our latest coverage

Get the latest news and weather delivered straight to your inbox