Lincoln, NE —Yesterday’s ruling by the State Supreme Court marks the fourth loss in a row for the payday loan industry, and is a huge win for the popular initiative that aims to stop predatory lending practices.
The initiative, which will be on the November ballot, seeks to reduce the annual percentage rate (APR) payday lenders can charge from the current average of over 400% to a maximum of 36%.
“Yesterday, the Supreme Court affirmed that our ballot language was drafted properly. Now we can focus on the effort to stop predatory lending this November,” said Kate Wolfe, campaign manager for Nebraskans for Responsible Lending.
She continued, “We now get to talk with voters about the realities of predatory payday lending: Payday lenders often prey on military veterans, seniors, communities of color, and people who are just struggling to get by. These companies offer vulnerable Nebraskans a short term loan, but end up charging them over 400% APR on average, trapping families in a cycle of debt. This ballot measure puts common-sense safeguards into place to stop predatory lenders from taking advantage of members of our community.”
Similar reforms have already been implemented by neighboring states like Colorado and South Dakota.
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