Nebraska voters approve rate of interest cap on payday loan providers

Nebraska voters approve rate of interest cap on payday loan providers

Ahmed Morsi brings along their month-old son Omar, while filling their ballot at a place that is polling Omaha, Neb., Tuesday, Nov. 3, 2020. (AP Photo/Nati Harnik)

OMAHA, Neb. (AP) — Nebraska voters have overwhelmingly authorized a measure to cap the yearly interest on payday advances at 36%.

Initiative measure 428 modifications current state legislation, that allows lenders to charge a lot more than 400per cent annually.

Supporters for the measure argued that such rates that are high low-income borrowers and the ones that do perhaps not comprehend financing demands.

Industry officials countered that the rates that are high misleading because most loans are short-term and that capping the attention price will place loan providers away from company.

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