Community Groups Look To Limit Payday Lending Interest Rates

Over a dozen community groups are starting a campaign to limit the interest rates on payday lending.

Nebraskans for Responsible Lending wants a limit of 36% annual interest while currently they charge more than 400%.

Aubrey Mancuso of Voices for Children calls the current rates predatory. “payday lenders take advantage of families by charging that average 404% with some going as high as 461% interest,” said Mancuso.

Mick Wagner of the Veterans Legal Support Network says ex-military people are among those who need protection. “The Military Lending Act brought the rate down to 36% for active duty service members, but it doesn’t do anything for the veterans or their families.”

Former State Senator Al Davis, who supported the idea while in the unicameral, said millions of dollars in fees are charged on top of high interest.

Father Damian Zuerlein, a Catholic Priest from south Omaha, says “for us it’s a moral issue, the poor are trapped in that cycle where they cannot get out.”

If enough signatures are collected and verified, the issue will appear on the 2020 election ballot.