Initiative 428 Nebraska was a citizen-led ballot measure, backed by a broad coalition including AARP Nebraska and the ACLU of Nebraska, that asked voters directly whether to cap payday loan rates.
Quick answer: Initiative 428 was a Nebraska ballot measure that capped payday loan rates at 36% APR. It passed on November 3, 2020, with about 83% voter approval — one of the most lopsided margins of any statewide ballot initiative — replacing the old fee structure that produced average APRs near 404%.
The vote and the numbers
Roughly 83% of Nebraska voters approved the measure, one of the largest margins for any ballot question that year. Before the change, the Nebraska Department of Banking and Finance reported an average payday APR near 404%; the initiative replaced the fee-per-$100 model with a hard 36% annual cap.
Why it mattered
- Nebraska joined states like Colorado, South Dakota and Montana that had already capped payday rates via citizen initiative.
- State data showed the average borrower took out about 10 loans a year — evidence regulators cited of a debt-cycle pattern the cap was meant to break.
- Industry opponents argued the change would eliminate short-term credit access; several payday chains closed Nebraska locations afterward.
The result today
Small-dollar borrowing in Nebraska now runs mostly through credit unions, installment lenders and paycheck-advance tools rather than storefront payday counters.
FAQ
When did Initiative 428 take effect?
Voters approved it November 3, 2020, and it amended state statute shortly after certification.
What was the old payday fee in Nebraska?
Up to $15 per $100 borrowed, producing an average APR around 404%.
Did other states do something similar?
Yes — Colorado (2018), South Dakota (2016) and Montana (2010) passed comparable 36% caps via ballot initiative.
Educational content, not financial advice. Always verify a lender is licensed by the Nebraska Department of Banking and Finance (NDBF) before borrowing.