Nebraska becomes the latest state to cap pay day loan interest levels

Nebraska voters overwhelmingly supported a ballot effort Tuesday that caps prices on pay day loans at 36% for the state, even as federal legislation limiting these loans that are high-cost stalled.

В© given by CNBC Ahmed Morsi brings along their month-old son Omar, while filling their ballot at a polling place in Omaha, Neb., Tuesday.

Approximately 83% of Nebraska voters approved Measure 428, according to your Nebraska Secretary of State, which supplies election outcomes. The ballot measure proposed putting a 36% yearly limitation from the quantity of interest for pay day loans. Having its passage, Nebraska has become certainly one of 17 states, along with Washington, D.C., to impose restrictions on cash advance rates of interest and costs, based on the ACLU.

“this might be a huge triumph for Nebraska consumers together with battle for achieving financial and racial justice,” Ronald Newman, nationwide governmental director during the ACLU, stated in a statement. ” Predatory payday financing makes racial inequalities throughout the economy a whole lot worse — these loan providers disproportionately target folks of color, trapping them in a cycle of financial obligation and rendering it impossible in order for them to build wide range.”

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