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Legislation of payday lending business in Nebraska

Payday loans are identified as small cash advance credit provided to a borrower in return for his paycheck. They are given for a short period of time and are famous for their high charges and percentage rates. The average sum of a payday loan is $500 and the interest rate amounts over 300% per year. Regulation of payday lending industry varies from one State to another. Some States set strict limitations on payday lenders, other create softer conditions. The Statutes Annotated § 45-901 and the Revised Statutes § 45-904 are the documents which include all the provisions payday lenders in Nebraska should comply with.

Payday loans appeared in the State in 1994 at first. All the payday lenders that want to legally operate in Nebraska are required to have a physical address in the State. Those lenders that are providing their services online are illegal.

In accordance with the Nebraska legislation, payday lending companies who are going to start up their business in the State must get a license. In addition, in order to establish a payday lending firm, you are required to have a bond that equals $50,000 and invest $25,000 in a company you are about to open. The price of the payday lending license for the first firm is $500. If you want to open another location, you are to spend additional $125. The licenses are required to be renewed every year.

The fee for a $100 payday loan shouldn’t exceed $15. Furthermore, a borrower is charged with additional financial fee amounting $17.65 for such loan taken for a period of 14 days. The annual percentage rate isn’t allowed to be more than 459%. A lender and a borrower are to conclude a written contract, which will contain all the details concerning a transaction. However, payday lenders of Nebraska are not required to give a Truth of Lending Act disclosing.

The amount of a loan provided to a payday customer isn’t allowed to exceed $500. It can be given for not more than one month. There are no renewals, refinancing, or consolidation of payday loans. The credit is required to be fully paid off till the due date. One non-sufficient funds fee is allowed to be paid form a borrower who doesn’t have enough money to pay back a loan on time.

Payday loans can be great assistants to you when you need cash instantly. The operations offered by payday lending companies propose a lot of advantages to the customers who have unexpected difficulties. There are many both legal and illegal payday lenders in the State of Nebraska. It is crucial for a borrower to make a right choice and to select a reliable and secure lender in order to avoid unnecessary problems. Reputable payday lending institutions are corresponding to the law in their activities and are trying to satisfy all borrowers’ requirements. So that you can be feel safe when asking such lenders for a loan.