Nebraska lawmakers to hear legislation on payday loans

Posted at 12:56 PM, Feb 20, 2017
and last updated 2017-02-20 13:56:28-05

Nebraska lawmakers will consider two different approaches to the practice of payday lending on Tuesday.

Opponents say it targets minority communities with predatory loans.

Senators Lou Ann Linehan and Tony Vargas are pushing a measure that would cap annual interest rates and limit interest and fee to 50 percent of the principal balance.

While Senator Joni Craighead has proposed a bill that would keep payday lending as is.

But Craighead’s proposed bill would create a new type of loan with longer terms and slightly lower interest rates.

Both bills are set for a legislative committee hearing on Tuesday.