Nebraska ballot drive seeks to cap payday loan rates
LINCOLN, Neb. (AP) — Advocates for low-income families and children have announced a petition drive for a Nebraska ballot measure to cap the interest payday lenders can charge at 36% annually.
The coalition said Friday it will start gathering signatures to put the issue on the 2020 general election ballot. Nebraska lawmakers have considered similar restrictions on payday loans, but those proposals have stalled.
Advocates say Nebraska lenders currently charge more than 400% annual interest on loans designed to trap people in long-term cycles of debt. The coalition includes 14 advocacy groups for children, low-income people, women and retired people.
Industry officials have argued that such proposals will kill their business.