Nebraska Payday Loan Laws and Legislation
Payday loans are small cash advances given against a person's next paycheck. They are short-term and are notorious for high interest rates and fees. They generally amount to $500 and can have APR about 300% and even more. Payday loan policy is different in every state; in some of them it is stricter than in others. In Nebraska all the laws concerning payday lending are contained in the Nebraska Revised Statutes § 45-904 and Nebraska Statutes Annotated § 45-901.
First time when payday loans were introduced in the state was in 1994. It is required that lenders wishing to operate in the state must be physically located there. All the lenders operating online are considered illegal.
It is also required by the Nebraska law that lenders should have a license in order to provide their services. Moreover, to start a lending business, $50,000 bond is needed and $25,000 more for each location that a lender is supposed to open. Nebraska license for payday lenders costs $500 and every additional branch - $125. All the lenders must renew their licenses every year.
Maximum amount of fee for a $100 loan is $15. Moreover, a borrower also pays $17.65 finance charge for every $100 acquired for a period of two weeks. APR for such loans cannot exceed 459%. Written agreement is required for every single payday lending transaction with all the information about the terms and fees. In Nebraska, however, lenders are not obliged to provide a Truth in Lending Act disclosure.
Maximum amount of a payday loan is Nebraska is $500 given for a period of no longer than 31 days. Loans cannot be renewed or somehow refinanced or consolidated. When the time is due, a loan should be repaid in full. A lender is allowed to charge one NSF fee in the amount of $15 in case there is not enough money in the borrower's account to repay.
Payday loans are very convenient in times when money is needed urgently. Such services are pretty beneficial in critical situations and help a lot of people to cope with unexpected problems. There are a lot of lending companies in the state; illegal ones as well. It is important to apply for a reputable and reliable one in order not to get into trouble. Legal payday lending companies operate according to the laws and know their limits and adhere to all the lender-borrower requirements, therefore, borrowers can feel secure and safe in case a necessity of such service arises.
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