LINCOLN, Neb. (AP) — Nebraska lawmakers are weighing new regulations on payday loans or allowing payday lenders to offer larger loans with high interest rates.
A legislative committee on Tuesday spent nearly four hours listening to borrowers, low-income advocates, Christian leaders and payday lenders.
Sen. Tony Vargas of Omaha sponsored a bill that would cap annual payday loan interest rates at 36 percent and limit total interest and fees. He says the bill will preserve a credit source for low-income Nebraska residents but prevent payday lenders from taking advantage of them.
Sen. Joni Craighead of Omaha sponsored a bill that will maintain payday loans and add longer-term high-interest loans. She says it fills a gap for consumers who need more than a few weeks to repay loans but don’t need a multi-year loan.