Call you Senator today to support LB194, a bipartisan bill being sponsored by two freshman Senators, Tony Vargas (District 7) and Lou Ann Linehan (District 39). The bill aims to protect our most vulnerable Nebraskans while allowing the pay day lending industry to remain profitable in the state.
Rev Scott Shreve of St. Paul UMC represented OTOC asking the Unicameral to reform Pay Day Lending
Click on the links below to learn more:
How to reign in Pay Day Lending LB 194
How the Debt Trap works
These Omaha Area Senators are on the Banking Committee and will decide if LB 194 gets a vote by the Unicameral. Let them know what you think.
Sen. Brett Linstrom, District 18 & Chair
Phone: (402) 471-2618
Sen. Joni Craighead, District 6
Phone: (402) 471-2714
Sen. John McCollister District 20
Phone: (402) 471-2622
Please let us know about your contacts at email@example.com or 402-344-4401
On Feb. 21, brave leaders gave testimony at a public hearing at the Banking Committee about the impact of Pay Day Loans on their lives
Elsa Ramon Moody of St. Margaret Mary Catholic testified about how desperation caused her to take out Pay Day Loans
Richard Blocker of Augustana Luther testified about how his need to buy medicine led him to take out a pay day loan
On Feb 16, OTOC held a Clergy Caucus for so faith leaders could learn more about how Pay Day Lending ensnares desperate people.
On Feb. 7, OTOC held an Issue Cafe to teach our leaders about Pay Day Lending
Tracy Bruckner and Lisa Sock of Women’s Fund of Omaha, along with Ken Smith of Nebraska Appleseed gave presentations followed by a question and answer session.
We learned that across the United States 12 million people borrow $7 billion each year. These are people who have a job and checking account and make approximately $30,000 a year. Most have credit cards, but they are maxed out. Most use pay day loans for monthly or recurring expenses.
In Nebraska pay day lenders are allowed to charge up to 461% in fees/interest each year on a loan. These high rates are among the highest allowed in the nation and lead to a revolving door of debt for the borrower. The loans last an average of 5 months, and the borrower pays $530 in fees to borrow $300 for those 5 months.
Reducing Interest Rates
Neighboring states, such as Colorado and South Dakota, have passed laws similar to our LB194. Tracy Bruckner described ours as a middle of the road law. This means that the regulations that would be imposed would not cripple the industry in Nebraska. There are plenty of Nebraskans who need help when unexpected expenses arise, but the restrictions of LB194 will ensure that those Nebraska borrowers will not be stuck in a revolving door of debt that so many borrowers have experienced.