The payday loan initiative aims to bring the interest rates down

Greg Wittmeier said Initiative 428 could shut down its business. He heads EZ Money Lending in Omaha. “If you vote yes, you are resolving to end an industry that has been in Nebraska for 26 years, providing jobs, paying taxes and serving 49,000 people in the state of Nebraska in 2019 alone,” said Wittmeier. Calling his product a short-term solution, he said his customers shouldn’t view his interest rates as an annual percentage. “APR is really misleading when it comes to talking about our industry.

An APR is really a way to have a financial product for a full year Our real interest rate is 15%, “said Wittmeier. That’s because borrowers pay $ 15 for every $ 100 loaned to them. However, according to Ken Smith of Nebraska Appleseed, the total APR for payday loans in Nebraska can be as high as 404%. Smith said this could result in some borrowers paying their loans and returning fees just to get back on loan. “It’s an extremely high APR that reflects the fact that borrowers are getting into the loop of borrowing and paying back all of these charges that are several times the original loan,” said Smith.

He wants Nebraskans to vote yes and lower the APR cap on payday loans to 36%. “It’s not access to credit, it’s access to debt. People get into this borrowing cycle and find it very difficult to get out of it, and it was.” Years. Nebraskans have paid $ 30 million a year in payday loan fees only, “Smith said. Wittmeier said this could affect those in need of his services.” We believe we play an important role in Nebraska. We offer people access to credit that has no other options for immediate funds sent, “he says d.

Greg Wittmeier said Initiative 428 could shut down its business.

He heads EZ Money Lending in Omaha.

“If you vote yes, you are resolving to end an industry that has been in Nebraska for 26 years, providing jobs, paying taxes and serving 49,000 people in the state of Nebraska in 2019 alone,” said Wittmeier.

Calling his product a short-term solution, he said his customers shouldn’t view his interest rates as an annual percentage.

“APR is really misleading when it comes to talking about our industry. An APR is really a way of valuing a financial product over a whole year. Our real interest rate is 15%,” said Wittmeier.

That’s because borrowers pay $ 15 for every $ 100 loaned to them.

However, according to Ken Smith of Nebraska Appleseed, the APR of a payday loan in Nebraska can be as high as 404%.

Smith said this could result in some borrowers paying back their loans and fees only to get back on loan.

“It’s an extremely high APR that reflects the fact that borrowers are getting into the loop of borrowing and paying back all of these charges, which are multiples of the original loan,” said Smith.

He wants Nebraskans to vote yes and lower the APR cap on payday loans to 36%.

“It’s actually not access to credit, it’s access to debt. People get into this borrowing cycle and find it very difficult to get out of it, and it has been for years. Nebraskans have $ 30 million a year in fees only Payday paid loans, “said Smith.

Wittmeier said it could affect those in need of its services.

“We believe we have an important role to play in Nebraska. We provide access to credit for people who have no other choice,” he said.

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