Nebraska Payday Lender Rate Of Interest Cap Initiative (2020)

Nebraska Payday Lender Rate Of Interest Cap Initiative (2020)

Nebraska Payday Lender rate of interest Cap Initiative
Election date 3, 2020
Topic Banking
Status On the ballot
Type State statute Origin Citizens november

The Nebraska Payday Lender interest Cap Initiative is in the ballot in Nebraska as a state that is initiated on November 3, 2020. 1 2

A “yes” vote supports restricting the interest that is annual for delayed deposit services—also referred to as payday lending—to 36%.

A “no” vote opposes this measure to restrict the interest that is annual for delayed deposit solutions (payday lending) to 36per cent, thereby keeping the present state rules on payday lenders, including a prohibition on charging costs more than $15 per $100 loan and a $500 loan restriction.

Exactly exactly What would the change that is initiative payday financing methods in Nebraska?

The effort would alter state statute by eliminating the current restriction that prohibits payday loan providers from billing costs more than $15 per $100 loaned and changing it having a 36% yearly restriction on payday financing deals. It could additionally prohibit payday loan providers from gathering charges, interest, or even the main associated with deal in the event that price charged is higher than 36%. Payday loan providers will also be forbidden from advertising, providing, or guaranteeing loans with interest levels surpassing 36% when you look at the state whatever the loan provider having a real workplace in hawaii. 1

Presently, Nebraska legislation limits the mortgage add up to $500 and loan term to 34 times. 3

What other states don’t have a lot of the percentage that is annual (APR) of great interest charged on pay day loans?

An overall total of 37 states allow payday financing. Around the world, four states—Colorado, Montana, brand New Hampshire, and Southern Dakota—have enacted a 36 % interest that is annual caps that prohibit additional charges or fees. Three of the caps had been passed away through resident initiatives: Colorado (2018), Southern Dakota (2016), and Montana (2010). Four states authorize payday financing with restrictions on APR, but permit lenders to charge additional charges on top of great interest. The rest of the 29 states authorize payday financing without limitations on APR. 4

That is behind the promotions surrounding the initiative?

Nebraskans for Responsible Lending is leading the campaign meant for the effort. The campaign had raised an overall total of $1.8 million in cash and in-kind contributions. The greatest contributors were the Sixteen Thirty Fund as well as the United states Civil Liberties Union. 5

Ballotpedia have not identified a subscribed campaign in opposition towards the effort. Brad Hill, with all the Nebraska Financial Services Association, opposes the effort saying, “We provide credit up to an area associated with public that cannot get credit through the banking institutions.” The measure would “be a death knell” for payday loan providers. The effort can also be dealing with a lawsuit filed on 27, 2020 july. Trina Thomas, who owns Paycheck Advance, argued within the lawsuit that the word “payday lenders” was perhaps perhaps not when you look at the statute that the effort would amend and then the effort is misleading to voters. 6

Text of measure

Object statement

The thing declaration can be follows: 1

The item of the petition would be to amend Nebraska statutes to cut back the quantity that delayed deposit solutions licensees, also called payday loan providers, may charge to a maximum percentage that is annual of thirty-six %; to prohibit payday lenders from evading this price limit; also to deem void and uncollectable any deal manufactured in breach with this price limit. 7

Complete text

The text that is full of measure is read below. 1


Nebraskans for Responsible Lending is leading the campaign meant for the effort. 5 8


The after were expenditure and contribution totals for the committee meant for the initiative. 9

Committees meant for Nebraska Payday Lender Interest Rate Cap Initiative (2020)
Committee Cash Contributions In-Kind Contributions Total Contributions Cash expenditures design=”font-size:1.10em that is Total expenses
Nebraskans for Responsible Lending $1,650,000.00 $113,222.35 $1,763,222.35 $1,428,895.80 $1,542,118.15
Total $1,650,000.00 $113,222.35 $1,763,222.35 $1,428,895.80 $1,542,118.15


The next is a listing of the donors that are top contributed to Nebraskans for Responsible Lending: 9

Donor money Efforts In-Kind Efforts Total Efforts
Sixteen Thirty Fund $800,000.00 $40,961.00 $840,961.00
ACLU $800,000.00 $35,842.30 $835,842.30
Fairness Project $0.00 $13,952.00 $13,952.00
Nebraska Appleseed Center for Law when you look at the Public $0.00 $10,612.07 $10,612.07
Fraser Stryker PC LLO $0.00 $5,785.00 $5,785.00


Ballotpedia didn’t determine committees registered in opposition towards the initiative.


To read through Ballotpedia’s methodology for addressing ballot measure campaign finance information, click on this link.