After three and a half years working to cap "sky-high" fees that Nebraska payday lenders charge, Omaha Together One Community (OTOC) won a landslide victory (83% to 17%) for statewide Initiative 428, reducing maximum interest rates on payday loans from 387% to 36%.

Payday Lending Regulation Is On the Ballot in Nebraska Amid Sky-High Interest Rates, Yahoo Finance

Nebraskans Vote to Cap Interest Rates on Payday Loans, NPR Marketplace Morning Report 

 

When Angela Basse, a youth coordinator and leader with St. Charles Borromeo Catholic, was a pre-teen she saw firsthand the toxic effects of payday lending on family life. "At the time they were made to look simple," she said, but "we missed out on book fairs in schools, field trips at school, because we didn't have the income. Because we knew that we were having to pay back loans."

She was joined by other leaders of VOICE in support of legislation that would curb the worst effects of the payday lending industry in the state including caps on interest rates and limits to the number of times a loan can be rolled over.

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The press conference began with a dark story: teacher's union president Elise Robillard, and single mother, was cash strapped and only "one flat tire or one sick kid away from a financial emergency." She took out a payday loan, thinking it a quick fix. Ultimately, it drove her into bankruptcy.

In response to stories like hers, religious leaders of VOICE-OKC, including Rev. Lori Walke of Mayflower Congregational Church and Rev. Tim Luschen of Charles Borromeo Catholic Church, are now calling for payday lending reforms. According to The Oklahoman, Oklahomans pay $52 million in fees charged by payday lenders, paying an average annual interest rate of 391 percent.

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As part of a two-pronged approach to restrict payday lenders, the North Texas IAF succeeded in persuading the Council to pass zoning restrictions which would separate payday and auto-title lenders from banks, credit unions and more traditional financial institutions, while also requiring them to seek a specific-use permit from the council. The purpose of this would be to prevent high concentrations of payday lenders in low-income (or any) neighborhoods and would apply to new businesses.

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Undeterred by the Louisiana legislature's reluctance to pass payday lending reform this year, Together Louisiana leaders turned their attention to the Consumer Finance Protection Bureau, taking over a hearing on mobile banking and pointing out the need for intervention on payday lending.

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"Interfaith members who met with The Times editorial board last week, said their interest in this legislation is about helping consumers avoid entering a debt loop they often find it difficult to escape from. Interfaith and other organizations around the state have joined forces as "Together Louisiana" to highlight the matter before the public and lawmakers.

'We are not asking that the payday industry be outlawed,' Interfaith members stated in a news release. 'Banks and credit unions have a cap on the number of loans one person can receive. We do not think it unreasonable that the payday industry should adhere to the same rules.'"

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