Law360 (4, 2020, 6:42 PM EST) — Voters in Nebraska on Tuesday overwhelmingly approved a ballot measure to establish a 36% rate cap for payday lenders, positioning the state as the latest to clamp down on higher-cost lending to consumers november.
Nebraska’s rate-cap Measure 428 proposed changing their state’s guidelines to prohibit certified deposit that is”delayed” providers from recharging borrowers yearly portion prices in excess of 36%. The effort, which had backing from community teams along with other advocates, passed with nearly 83% of voters in benefit, in accordance with a tally that is unofficial the Nebraska assistant of state.
The effect brings Nebraska consistent with neighboring Colorado and Southern Dakota, where voters authorized comparable 36% price limit ballot proposals by strong margins in 2018 and 2016, correspondingly. Fourteen other states plus the District of Columbia also provide caps to suppress lenders that are payday rates, based on Nebraskans for Responsible Lending, the advocacy coalition that led the “Vote for 428” campaign.
That coalition included the United states Civil Liberties Union, whose nationwide governmental manager, Ronald Newman, stated Wednesday that the measure’s passage marked a “huge success for Nebraska consumers while the battle for attaining financial and racial justice.”
“Voters and lawmakers nationwide should take notice,” Newman said in a declaration. “we must protect all customers from these predatory loans to assist shut the wide range space that exists in this nation.”
Passing of the rate-cap measure arrived despite arguments from industry and somewhere else that the extra limitations would crush Nebraska’s already-regulated providers of small-dollar credit and drive cash-strapped Nebraskans into the hands of online loan providers at the mercy of less regulation. […]