Payday loans are fast approval loans that do not need any form of collateral. These loans have a better approval rating since the lender won’t be running a credit check of the applicant. These loans are approved depending upon the information provided by the borrower.
- Quick approval – borrowers can receive their approval within 90 seconds of application submission.
- Cash deposited directly in the bank account – once approved the cash will be deposited into your account by the next business day and sometimes even sooner.
- Clearly laid down terms – most of the payday loan providers operating in the City of Omaha are strictly following the state norms which include some clearly stated rules and regulations.
Some lenders might still be involved in unlawful practices when it comes to payday loans. The policies governing these loans vary depending upon the state; in some states it can be stricter than others. In the City of Omaha all laws concerned with payday loans are included in the Nebraska Statutes Annotated § 45-901 and Nebraska Revised Statutes § 45-904.
Payday loans were introduced in the state for the first time in the year 1994. According to the rules governing these loans the lender must be physically present in the state in order to operate in the region. All lenders that have their entire operations online with no physical presence in the state are considered illegal. Also according to the Nebraska Law, the lenders operating in Omaha must have licenses if they wish to provide their services. Moreover, in order to begin with a lending business the lender has to provide a bond of $50,000 and an additional bond of $25,000 for every location that the lender wishes to operate in. the license cost for the lender in the state of Nebraska is $500 and for every additional branch an extra $125. The lending licenses are to be renewed every year.
The maximum fee amount that can be charged for a $100 loan is $15. Moreover, the borrower also has to pay a finance charge of $17.65 for every $100 taken for a period of two weeks. APR for these loans must not exceed 459%. A written agreement is needed for each and every payday loan transaction. The agreement must contain all the information concerning the terms and fee. In the state of Nebraska however the lenders are not required to provide a disclosure for Truth in lending act.
The maximum payday loan amount for the state of Nebraska is $500 that can be given for a maximum time period of 31 days. These loans cannot be refinanced, renewed or consolidated. When the due date arrives the loan must be repaid in full. The lender is permitted to charge one NSF fee of $15 if the borrower has insufficient balance in his account to repay the loan. The borrower is permitted to have two different payday loans at the same time, however no extensions are allowed in the repayment period.