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.