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Nebraska bill to offer higher loan interest advances

Posted at 11:15 AM, Feb 01, 2019
and last updated 2019-02-01 12:15:12-05

LINCOLN, Neb. (AP) — Nebraskans who take out installment loans could end up paying a higher interest rate under a bill that won first round approval from lawmakers.

Senators voted 28-1 on Friday to advance the bill at the request of OneMain financial, a loan company with branch offices in Nebraska.

The measure would allow lenders to charge interest of up to 29 percent per annum on installment loans. The current law allows lenders to charge up to 24 percent per annum on amounts up to $1,000, and 21 percent on any remaining unpaid balance.

The measure stalled last year amid criticism from some lawmakers that the current rate caps were already too high.