Nebraska voters have chosen to cap payday loan interest rates. Ballot box Initiative 428 limits the annual percentage rate on payday loans at 36%.
A Nebraska Department of Banking report indicates that the average annual percentage rate on payday loans in Nebraska is 405%.
However, according to Thomas Aiello of the National Taxpayer Union,
Payday loans have infiltrated every neighborhood and income level. And what starts out as an emergency loan to cover a temporary cash shortage can turn into a cycle of obtaining new payday loans to pay off older loans. And so it begins, a process of going from one payday lender to another. An entire day
What if a bar could not serve a customer a second drink until one hour after the first drink was consumed? What if a donut shop could not sell a second serving unless they determined if the consumer would burn off all the calories by the end of the day? What if a tobacco store
Wells Fargo, Regions Bank, US Bank and other lending institutions have recenty entered the payday loan market through a new banking product called Direct Deposit Advances (DDA). According to professor Alex Mikulich of Loyola University in New Orleans, the banks are offering short-term loans charging interest rates of 365% to bank customers that have