LINCOLN, Neb. (AP) — Payday lenders are squaring off against those who say the loans prey on minority communities as Nebraska lawmakers prepare to hear two vastly different approaches to regulating the industry.
Sens. Lou Ann Linehan and Tony Vargas are pushing a measure that would cap annual interest rates and limit interest and fees to 50 percent of the principal balance.
Sen. Joni Craighead has proposed a bill that would keep payday lending as is and create a new type of loan with longer terms and slightly lower interest rates.
Both bills are set for a legislative committee hearing on Tuesday.