Borrowing in Nebraska: What State Law Allows

The 36% limit on delayed deposit loans

Nebraska's Delayed Deposit Services Licensing Act still licenses payday-style lenders, but since Initiative 428 passed in 2020, section 45-918 says a licensee "shall not impose an annual percentage rate greater than thirty-six percent." The penalty is strong: a transaction that breaks the cap is void, and the lender can't collect principal, interest or fees on it.

• A lender may hold no more than $500 in checks from you at one time, and no more than two checks.
• It may not hold a check for more than 34 days.
• Renewals and rollovers are generally prohibited.
• It may not charge for loan brokerage, insurance or other add-on products.

At 36%, a $500 loan for a month costs about $15 in interest, which leaves little room for the traditional payday fee model. A lender that charges more under a Nebraska license is making a loan the law treats as void. Keep your agreement and payment records, and report it to the Department of Banking and Finance. If you need a small amount, start with payday loan alternatives such as a credit union payday alternative loan.

Installment loan rates after the 2025 rewrite

In 2025, LB474 folded the Nebraska Installment Loan Act into the renamed Nebraska Installment Loan and Sales Act. The rate tiers moved to section 45-349:

A loan of $3,000 or less generally can't run longer than 36 months. If a lender violates the act, it can't collect interest or charges on the loan and must refund what it collected. Banks and their online partners may follow other rules, so compare the APR on each personal loan offer.

No title loan law

Nebraska has no statute authorizing car title lending of the kind sold in states like Missouri. A licensed installment lender that takes your car as collateral is still subject to the rate tiers above. An offer of a triple-digit title loan, online or by phone, is a reason to check the lender's license with the Department of Banking and Finance before you hand over your title or a spare key.

Four or five years to sue

Nebraska gives creditors five years to sue on an agreement, contract or promise in writing (Neb. Rev. Stat. 25-205) and four years on a contract not in writing (25-206). Credit card agreements are rarely signed the way a loan note is, so card debt may be treated as an unwritten contract with a four-year limit; a creditor holding a signed agreement may argue for five. If you're sued on an old account, raise the deadline in your answer. See how statutes of limitations work.

Garnishment and your paycheck

After a judgment, a creditor can garnish the lowest of: 25% of your weekly disposable earnings, the amount above 30 times the federal minimum wage, or 15% if you're the head of a family (Neb. Rev. Stat. 25-1558). On a weekly take-home pay of $800, for example, that's at most $120 for a head of family instead of $200. Support orders, Chapter 13 bankruptcy orders and tax debts follow different limits. For your rights before it gets that far, read debt collectors and your rights.

Checking a lender and making a complaint

1. 1 Search the license through the Nebraska Department of Banking and Finance or NMLS Consumer Access.
2. 2 Check the APR. On a payday-style loan from a Nebraska licensee, anything above 36% breaks the law.
3. 3 File a complaint with the Department online or through its consumer hotline at (877) 471-3445. Include copies of your agreement, receipts and any messages from the lender.

Common questions