(p. A1) Nebraska’s payday lenders have all shut down in the two years since voters capped the interest rate they could charge.
The last handful gave up their delayed-deposit services business licenses in December , according to records kept by the Nebraska Department of Banking and Finance.
Just six months earlier, there had been 19 such businesses.
. . .
. . ., Ed D’Alessio, executive director of INFiN, a national trade association representing delayed-deposit businesses, said the closures were predictable, based on the experience of other states that have imposed similar rate caps.
“Nebraska’s 36% rate cap on delayed-deposit loans was never about consumer protection,” he said. “It was about activists’ thinly veiled desire to eliminate a regulated service valued by many.
“But Nebraskans’ need for credit did not go away. Instead, they have been left with fewer options for managing their financial obligations,” D’Alessio said. . . .
Payday loans, also known as cash advances, check advances or delayed-deposit loans, are a type of short-term, high-cost borrowing that people use to get small amounts of immediate cash.
For the full story, see:
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the story was updated Oct. 18, 2023 [sic], and has the title “Payday lenders disappeared from Nebraska after interest rate capped at 36%.”)