Payday Loan in Nebraska
Legal Status: Legal
Citation:
Neb. Stat. Ann. § 45-901
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: $15 per $100 or pro rata for any part thereof on amount of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two
Rollovers Permitted: None (cannot repay, refinance, consolidate)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action:
Where to Complain, Get Information:
Regulator: Nebraska Department of Banking & Finance
Address: Financial Institutions, 1230 ‘O’ Street, Suite 400 P.O. Box 95006 Lincoln NE 68509
Phone: (402) 471-2171
Applicability: To anyone who, for a fee, accepts a check dated on the date it was written and hold it for a period of days prior to deposit or presentment or accepts a check dated subsequent to the date it was written. Otherwise, small loan act applies. Neb. Rev. Stat. § 45-1024 (24% per year on loans up to $1000).
Exemptions: To any financial institution organized under the law of the state or the U.S.
Licensing requirements: Department of Banking & Finance enforces. Must disclose any misdemeanors involving the act or felonies; pay a $300 fee and provide a surety bond of $50,000; must have assets of at least $25,000. Bond shall be renewed and refiled annually. A public hearing is held on each application.
Disclosures: Must conspicuously post the license and conspicuously display a schedule of all fees, charges, and penalties for all services to be provided. At the time of any transaction, lender must give in plain English a written notice stating the fee to be charged, the date on which the check will be deposited, and any penalty not to exceed $15 if the check is not negotiable on the date agreed upon.
Permitted charges: $15 per $100 or pro rata for any part thereof on the face amount of the check.
Prohibited acts: Hold more than 2 checks at any one time; hold checks in an aggregate face amount of more than $500; hold a check for more than 31 days; accept a check as repayment, refinancing, or any other consolidation of a check or checks held by the same licensee.
Enforcement: May suspend or revoke a license; issue a cease and desist order; initiate an action in court for an injunction.
Penalties: Can impose a fine not to exceed $500 per violation. Operating without a license is a a class IV felony.
