Lawmakers Postpone Vote On Bill To Raise Loan Caps

Nebraska State Capitol (Jeff Motz/KFOR News)

Nebraska lawmakers have postponed a vote that would let personal loan companies charge a higher maximum interest rate after some senators objected to the proposal.

Senators moved past the bill Monday without advancing it through the second of three required votes. Some senators say it could force consumers to pay higher interest rates on installment loans.

The bill would allow lenders to charge interest of up to 29 percent per annum. Current law lets them charge up to 24 percent per annum on principal amounts up to $1,000 and 21 percent per annum on any remaining unpaid balance. It was requested by OneMain Financial, a loan company with Nebraska branches.

The bill’s sponsor, Sen. Brett Lindstrom of Omaha, says he will work with to try to find a compromise.

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