Law360 — Voters in Nebraska on Tuesday overwhelmingly authorized a ballot measure to determine a 36% price limit for payday lenders, positioning their state because the latest to clamp straight down on higher-cost financing to customers.
Nebraska’s rate-cap Measure 428 proposed changing their state’s guidelines to prohibit certified “delayed deposit services” providers from billing borrowers yearly percentage prices of greater than 36%. The initiative, which had backing from community teams as well as other advocates, passed with nearly 83% of voters in benefit, in accordance with an unofficial tally from the Nebraska assistant of state.
The effect brings Nebraska consistent with neighboring Colorado and Southern Dakota, where voters approved similar 36% price limit ballot proposals by strong margins in 2018 and 2016, correspondingly. Fourteen other states in addition to District of Columbia likewise have caps to suppress lenders that are payday prices, 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, whoever 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.”