Nebraska Payday Loan Laws

The laws regarding payday loans in Nebraska are written out clearly in Nebraska Revised Statutes §45-904 and Nebraska Statutes Annotated §45-901. Lenders operating in Nebraska must be headquartered in Nebraska. No outside entities are permitted.

• The minimum loan term is 14 days
• The maximum loan term is 34 days
• Loans cannot exceed $500
• No more than 15% can be charged in finance fees
• Two loans can be obtained at one time, but cannot exceed $500 total
• The APR cannot exceed 650%
• Extensions are not permitted
• Only a one time fee of $15 may be charged on any defaulted loan.

Nebraska does the best that it can when regulating these payday loan facilities. A license must be obtained from the Nebraska Department of Banking. Physical proof that the business is Nebraska based is required. Criminal history activity, for private lending companies, must be disclosed in the application process. A fee of $300 must be paid and a surety bond of at least $50,000 must be obtained. The lender’s assets have to be at least $25,000. Nebraska holds a public hearing regarding any lending facility’s application.

Nebraska lenders must display their license in plain view. Any lender that does not display a license for patrons to view can be subject to penalties under Nebraska Law. Lenders are also required to provide borrowers with a clearly printed, and in an understandable language, list of fees and payment schedules.

The laws that Nebraska has in place appear to protect the borrower; in fact, this is where the borrower still needs to be wary. Having two payday loans out at one time requires paying interest and/or finance fees on both loans. All of the other regulations seem to protect the consumer well. Consumers can file complaints with the Nebraska Department of Banking if they feel that a lender is not abiding by the laws set in place by state legislature.

While payday loans are legal in Nebraska, the hoops that a lender has to jump through in order to be approved keep the number of illegitimate companies to a minimum. A company that plans to defraud customers is not going to put itself through that process by any means. Nebraska may have some of the best laws in place as far as lender applications and requirements in the country. While no consumer is safe of financial hardship, taking a payday loan is your own doing. It is your responsibility to borrow only what you are actually able to repay.

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