Payday lenders vanish in Nebraska following 36% rate cap

“I kept getting these text messages and phone calls early in the morning or late evening. When I finally did speak with them on the phone, all they wanted was my social security number.”

Stories of harassment like this one from a Nebraska woman, featured in an Omaha 6 News segment, have become par for the course when dealing with predatory payday loan companies in the two years since the state of Nebraska placed a 36 percent interest rate cap on the vulturous industry.

According to a recent investigative study by the Better Business Bureau (BBB), predatory payday loan outlets and similar fraudsters are harassing and attempting to trick consumers by phone, email, and traditional mail, trying to convince them of industry laws that don’t exist, and refusing to explain the precise terms of loans.

The BBB says instances like these represent major red flags in an industry already rife with disreputable tactics and a reputation to match.

 

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