The initiative is Nebraska’s first to qualify for the November 2020 ballot
LINCOLN, NE — The Secretary of State’s Elections Division announced today that the Nebraskans for Responsible Lending campaign turned in more than enough signatures to qualify for the November 3 ballot. Signatures were verified in 46 counties, although only 38
are required.
The initiative aims to reduce the amount that payday lenders can charge up to a maximum annual percentage rate of 36 percent.
“The fact that signatures were verified in 46 counties speaks to broad support for this initiative,” said Aubrey Mancuso, a spokesperson for Nebraskans for Responsible Lending and Voices for Children Executive Director. “Predatory payday lenders have been charging excessive interest to Nebraskans who can least afford it for years, trapping them in long-term debt that is financially devastating. We found overwhelming support from Nebraskans when circulating this petition, and we are very pleased it’s official. We can now move forward with ending these unethical lending practices.”
Thanks to a strong, early start in Fall 2019, the Nebraskans for Responsible Lending coalition was able to collect more than 120,000 voter signatures, Roughly 85,200 valid voter signatures were required to qualify for the November general election ballot.
Although payday loans are marketed as a short-term fix, the loan terms are actually designed to trap borrowers in a cycle of long-term debt. The Nebraska Department of Banking and Finance (NDBF) reports that in 2018 the average borrower was charged 404 percent APR on a $342 loan and was trapped in 10 loans in a single year.
“Families are routinely devastated by this practice, finding themselves unable to meet basic living expenses, and often losing bank accounts or filing bankruptcy,” Mancuso said. “Nebraskans should be able to access credit that is fair and reasonable. Trapping Nebraskans in a cycle of debt just isn’t the Nebraska way.”
“Voters now have an opportunity to protect our state’s most vulnerable populations,” said Al Davis (R – Hyannis), former Nebraska state senator for District 43. “Many in our state are dealing with financial struggles and living paycheck to paycheck — even more so now with the current pandemic. Yet rather than helping consumers, payday lenders make things worse. The legislature has had ample opportunity to fix this problem but has not. Now the voters will decide.”
Richard Blocker, a former payday lending borrower, said today is a proud day for him.
“From day one, I have gathered signatures in my community to make sure that no one has to go through the predatory payday loan trap I faced years ago. As a former borrower, as a person of faith, and as a community leader, I’m outraged by triple-digit interest rates and I’m ready to take this fight to the ballot in November.”
Sixteen states and the District of Columbia have already enacted rate caps of about 36 percent. By large majorities, voters in Montana, South Dakota, Colorado, Arizona, and Ohio have passed ballot measures effectively capping payday loan rates at 36% or less. Such a cap has bipartisan support in Nebraska and across the country.
This initiative is supported by Nebraskans from all walks of life, ranging from military veterans to faith leaders, leaders and voters across the partisan spectrum, and community groups that advocate for Nebraska families and consumers. Coalition members include AARP Nebraska, the ACLU of Nebraska, Community Action of Nebraska, Habitat for Humanity of Omaha, Heartland Workers Center, Immigrant Legal Center, Lending Link, Lincoln Chapter of NAACP, National Association of Social Workers – Nebraska Chapter, Nebraska Appleseed, Nebraska Children’s Home Society, Omaha Together One Community, Voices for Children in Nebraska, the Women’s Fund of Omaha, Youth Emergency Services, and YWCA Lincoln.
