Nebraskans for Responsible Lending released polling results that show strong support for the ballot initiative to curb predatory payday lending, with 67% saying they will vote for Initiative 428. The polling was conducted in August by Benenson Strategy Group. Exact ballot title language was shown to respondents.
Initiative 428 will appear on the November ballot and, if it passes, will reduce payday lending rates to 36%,down from an average of 400% APR.
The polling shows support across party lines, with 63% of Republicans, 71% of Independents and 70% of Democrats saying they are in favor of it. There is also wide support among demographic groups, with 66% of women and 68% of men supporting it — as well as 70% of those under age 50 and 63% of those over age 50. When voters heard a simple explanation of Initiative 428, support climbed to 81%.
Kate Wolfe, Campaign Manager for Nebraskans for Responsible Lending, said she is very encouraged by the polling numbers. “What’s so amazing about this issue is it cuts across ideologies and has widespread bipartisan support. In an election year that’s clouded with divisiveness, Initiative 428 stands apart. Regardless of background, Nebraskans are clearly united against predatory payday loan rates that exceed 400% APR and are ready to vote for Initiative 428 to lower those rates to 36%.”
Predatory payday lenders target seniors, veterans, communities of color and young people, placing many Nebraskans in a cycle of debt, unable to cover basic living expenses and resulting in overdraft fees, closed bank accounts and bankruptcy. Capping rates at 36% APR means Nebraska borrowers would no longer face unmanageable debt, Wolfe said. ”This ballot measure puts common-sense safeguards into place to stop predatory lenders from taking advantage of members of our community.”
Similar protections for borrowers have already been implemented by 16 states and the District of Columbia. Those states include Colorado and South Dakota, which both passed ballot initiatives to limit interest on payday loans to 36% APR by wide margins.