Nebraska Payday Lender Interest Cap Initiative (2020)

Nebraska Payday Lender 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 rate of interest Cap Initiative is regarding the ballot in Nebraska being an initiated state statute 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 yearly interest charged for delayed deposit solutions (payday financing) to 36per cent, therefore keeping the prevailing state laws and regulations on payday lenders, including a prohibition on charging costs more than $15 per $100 loan and a $500 loan limitation.

Just just What would the change that is initiative payday financing techniques in Nebraska?

The effort would alter state statute by eliminating the limit that is existing forbids payday loans New Hampshire payday loan providers from asking costs more than $15 per $100 loaned and changing it having a 36% yearly restriction on payday financing deals. It can additionally prohibit payday loan providers from collecting costs, interest, or perhaps the key associated with the deal in the event that price charged is higher than 36%. Payday loan providers may also be forbidden from advertising, providing, or guaranteeing loans with interest levels surpassing 36% when you look at the state no matter what the loan provider having an office that is physical 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 yearly portion price (APR) of great interest charged on payday advances?

An overall total of 37 states permit payday financing. Nationwide, four states—Colorado, Montana, brand New Hampshire, and Southern Dakota—have enacted a 36 per cent yearly rate of interest caps that prohibit extra charges or costs. 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 limitations on APR, but permit lenders to charge fees that are extra top of great interest. The residual 29 states authorize payday financing without restrictions on APR. 4

That is behind the promotions surrounding the effort?

Nebraskans for Responsible Lending is leading the campaign to get the effort. The campaign had raised an overall total of $1.8 million in money and contributions that are in-kind. The biggest contributors had been the Sixteen Thirty Fund additionally the United states Civil Liberties Union. 5

Ballotpedia have not identified a authorized campaign in opposition to your effort. Brad Hill, using the Nebraska Financial Services Association, opposes the initiative saying, “we offer 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 initiative can be dealing with case filed on 27, 2020 july. Trina Thomas, who owns Paycheck Advance, argued within the lawsuit that the expression “payday lenders” was maybe not into the statute that the effort would amend and then the effort is misleading to voters. 6

Text of measure

Object statement

The item declaration can be follows: 1

The thing for this petition would be to amend Nebraska statutes to lessen the quantity that delayed deposit solutions licensees, also referred to as payday loan providers, may charge to a maximum percentage that is annual of thirty-six %; to prohibit payday lenders from evading this price limit; and also to deem void and uncollectable any transaction produced in violation for this price limit. 7

Complete text

The complete text associated with the measure may be read below. 1


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


Listed here were expenditure and contribution totals for the committee meant for the effort. 9

Committees meant for Nebraska Payday Lender Interest Rate Cap Initiative (2020)
Committee Cash efforts In-Kind Contributions Total Contributions Cash expenses 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 following is a listing of the top donors that contributed to Nebraskans for accountable 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 Venture $0.00 $13,952.00 $13,952.00
Nebraska Appleseed Center for Law within the Public $0.00 $10,612.07 $10,612.07
Fraser Stryker PC LLO $0.00 $5,785.00 $5,785.00


Ballotpedia would not recognize committees registered in opposition to your effort.


To see Ballotpedia’s methodology for addressing ballot measure campaign finance information, just click here.

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