Omaha Payday Industry Preys On Less Fortunate
Omaha, Nebraska — Payday lending services are strewn about the city of Omaha. “It’s modern-day loan sharking, but it’s sanctioned by law at this moment,” said Danielle Nantkes, attorney at Nebraska Appleseed, a non-profit consumer-advocacy firm.
Omaha is home to more than 70 shops, but only four lie west of 108th. Most of these businesses nest east of 84th. Ames Avenue has two shops that offer instant payday loans located in a one-mile stretch, and the city of Bellevue has nine.
Nebraska Appleseed and the Center for Responsible Lenders think it’s time for change. Nantkes said her organization wants to tightly regulate payday lenders. She said payday lenders must clearly and honestly disclose interest rates and that a cap on those rates would be beneficial. Nantkes also promotes legislation that would limit the number of times a customer could acquire a payday loan.
Payday loan services aren’t always predatory. Nantkes stressed the need for a “happy medium.” Their services can be useful if utilized with moderation, she said. However, aggregated use is the blood in the water that brings sharks.