Payday lenders prey on vulnerable Nebraska families, taking advantage of them by charging interest rates that average 404% annual interest -- and in some cases go as high as 461%. Marketed as a short-term fix, the terms are designed to trap borrowers in a cycle of loans that cause long-term debt. Unlike most loans, payday lenders do not verify that borrowers will be able to repay their loan on time, because they stand to make more profit when those borrowers must reborrow again and again. Payday loans are linked to a cascade of financial consequences, such as increased overdraft fees, delinquency on other bills, involuntary loss of bank accounts, and even bankruptcy.
Last year, the average Nebraska borrower was charged 404% APR on a $342 loan and was trapped in 10 loans in a single year. Payday lenders drained over $28 million in fees from Nebraskans in 2017, mostly to out-of-state companies.
Year after year, Nebraska lawmakers have failed to protect families from predatory payday loans. That’s why we’re taking a stand to put Nebraska families first by ensuring that consumer loans are fair and reasonable. Together, we can stop the payday loan debt trap by putting a 36% interest rate cap on the ballot in 2020. It's time for Nebraskans to say no to predatory lending: 400% is just too high.Learn More
Nebraskans for Responsible Lending is a coalition of organizations and individuals that are standing with Nebraska families to stop the predatory payday lending debt trap.
AARP of Nebraska
ACLU of Nebraska
Beta Upsilon Chapter of the Omega Psi Phi Fraternity
Community Action of Nebraska
Habitat for Humanity of Omaha
Heartland Workers Center
Immigrant Legal Center
League of Women Voters of Nebraska
League of Women Voters of Greater Omaha
National Association of Social Workers, Nebraska Chapter
Nebraska Children’s Home Society
North Omaha Neighborhood Alliance
Omaha Together One Community
Voices for Children in Nebraska
Women's Foundation of Lincoln and Lancaster County
Women’s Fund of Omaha
Youth Emergency Services
YWCA of Lincoln