Payday lending is legal in Nebraska, where there are laws specifically authorizing the practice. Cash advance businesses must be licensed in the state. Pursuant to Nebraska statutes, a borrower cannot have more than two outstanding payday loans at a time, and the two checks cannot exceed $500. A payday loan company must post its license in a conspicuous manner, along with all charges, late payment penalties, and fees. Additionally, the cash advance loan contract must set forth in a clear and understandable fashion the date that the check will be deposited and the fees to be charged.
A borrower can request up to $500 in payday loan funds.
The loan term is 31 days.
A borrower cannot extend or rollover a check cash advance loan.
The fees charged by a cash advance business cannot exceed $15 per $100 borrowed. The finance fee for a two-week payday loan in the amount of $100 is $17.65. Nebraska law allows a cash advance lender to charge a defaulting borrower a late fee (only once) of $15.
The APR for a two-week loan in the amount of $100 is 459%.