Payday Loans and Cash Advance in Nebraska

Capped at 36% APR by voters in 2020. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Nebraska.

Is a Cash Advance Legal in Nebraska?

Payday loans are legal in Nebraska but capped at a 36 percent annual percentage rate. The Delayed Deposit Services Licensing Act, Nebraska Revised Statutes 45-901 to 45-931, licenses payday lenders, called delayed deposit services businesses, and until 2020 it allowed a fee of $15 per $100 on the face amount of a check held for up to 34 days. Initiative Measure 428, on the November 3, 2020 ballot, asked voters to cut that to a maximum annual percentage rate of 36 percent, to bar lenders from evading the cap, and to make any transaction above it void. Voters approved it, and section 45-918 now says a licensee shall not impose an annual percentage rate greater than thirty-six percent. The rest of the Act still applies: a licensee may hold no more than two checks from one person totaling $500, may hold a check no longer than 34 days, may not roll a loan over, must let you rescind by 5 p.m. the next business day, and must offer an extended payment plan once a year. On $300 for two weeks the most a lender can charge is $4.14. The Department of Banking and Finance licenses the businesses and takes complaints.

The governing law is Nebraska Delayed Deposit Services Licensing Act, Neb. Rev. Stat. 45-901 to 45-931, as amended by Initiative Measure 428 (2020) (Neb. Rev. Stat. 45-904, 45-917, 45-918, 45-918.01 to 45-918.03, 45-919, 45-919.01, 45-926).

Loan Limits and Terms in Nebraska

Nebraska kept the whole payday statute and changed one number. The Act still defines the product as a check held for a fee, still limits a licensee to two checks and $500 per customer, and still caps the hold at 34 days, but 45-918 now measures the fee as an annual percentage rate under the Truth in Lending formula and caps it at 36 percent, counting every charge except the returned check and non-negotiable check penalties. The anti-evasion clause in 45-919(1)(k) reaches mail, telephone and internet lending whether or not the licensee has a physical location in the state, and 45-919(2) bars affiliates and credit services organizations from adding charges. If you cannot pay when due, 45-919.01 lets you elect an extended payment plan once in any twelve-month period, in at least four equal installments timed to your paydays, with no added interest or fees.

What a $300 Loan Costs in Nebraska

Neb. Rev. Stat. 45-918 caps every fee, interest and charge on a delayed deposit transaction at a 36 percent annual percentage rate, so the fee is the interest on $300 for 14 days at that rate: 300 x 0.36 x 14 / 365 = $4.14. The borrower writes a check for $304.14. Checking the APR: 4.14 / 300 x 365 / 14 = 0.36, or 36 percent. Over the 34-day maximum hold the same loan would cost $10.06. Before Initiative 428 the Act allowed $15 per $100 on the face amount of the check, so a $300 loan meant a check of about $353 and a fee of about $53, roughly 460 percent APR over 14 days.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Nebraska

• No one may operate a delayed deposit services business in Nebraska without a license from the Director of Banking and Finance; an unlicensed person's transaction is void and it has no right to collect principal, interest or fees (Neb. Rev. Stat. 45-904).
• A licensee may not impose an annual percentage rate above 36 percent, and a transaction that does is void, leaving the licensee no right to collect or keep any principal, interest, fees or other charges (Neb. Rev. Stat. 45-918).
• You have the right to rescind a delayed deposit transaction before 5 p.m. on the next business day, and to redeem your check by paying the full amount at any time before the licensee presents it (Neb. Rev. Stat. 45-918.03).
• At the time of the transaction the licensee must give you a plain-English notice showing the amount, due date, total fees in dollars and as an APR and the deposit date, with capitalized statements about the $500 limit and your right to rescind (Neb. Rev. Stat. 45-917).
• A licensee may hold no more than two checks from you totaling no more than $500, may not hold a check for more than 34 days, may not roll over or refinance a transaction, and may not charge for brokerage, insurance or other add-ons (Neb. Rev. Stat. 45-919).
• If you cannot pay when due, you may elect an extended payment plan once in any twelve-month period, repaying in at least four equal installments on your paydays with no additional charges, and you may prepay at any time without penalty (Neb. Rev. Stat. 45-919.01, 45-918.02).
• If your check is returned unpaid the licensee may collect one returned check charge of up to $15 plus court costs and reasonable attorney's fees, and it may not redeposit the check after two failed attempts without new written authorization (Neb. Rev. Stat. 45-918.01, 45-919(1)(l)).

Complaints and licence checks go to the Nebraska Department of Banking and Finance, Financial Institutions Division: 402-471-2171, ndbf.nebraska.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Nebraska

The Act is built around a physical check, but the 2020 amendments made sure the rate cap follows the borrower online. Section 45-919(1)(k) bars a licensee from evading section 45-918 by making, offering, assisting, arranging or guaranteeing a transaction with a greater rate, fees or charges through any method, including mail, telephone, internet or any electronic means, and section 45-919(2) extends that to affiliates, credit services organizations and anyone else who would add charges on top. Section 45-904 makes any transaction by a person who should be licensed but is not void. Nebraska licensees have been registered through the Nationwide Multistate Licensing System since January 1, 2021, so a lender's status can be checked in NMLS Consumer Access or by calling the Department at 402-471-2171. Out-of-state and tribal-affiliated websites still advertise loans to Nebraskans at pre-2020 prices; those loans are unenforceable in Nebraska, but the lender may keep debiting your account, so keep the documents and file a complaint.

Alternatives If a Payday Loan Is Not the Right Fit

A licensed Nebraska delayed deposit loan at 36 percent is now one of the cheapest short-term loans in the country, so if the lender is on the Department's list the product itself is a reasonable option for a small, short gap. Nebraska banks and credit unions, which are exempt from the Act under 45-903, offer small personal loans and overdraft lines, and federal credit unions can offer Payday Alternative Loans under National Credit Union Administration rules. For a single bill, ask the utility, landlord or clinic for a written payment plan, and use Nebraska's 2-1-1 line to reach community action agencies for rent, energy and food assistance. If you owe a licensed lender and cannot pay on the due date, ask for the extended payment plan under 45-919.01 before the due date passes.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• South DakotaThe fee cap, a worked example and the regulator to call in South Dakota.
• IowaThe fee cap, a worked example and the regulator to call in Iowa.
• MissouriThe fee cap, a worked example and the regulator to call in Missouri.
• KansasThe fee cap, a worked example and the regulator to call in Kansas.
• ColoradoThe fee cap, a worked example and the regulator to call in Colorado.
• WyomingThe fee cap, a worked example and the regulator to call in Wyoming.