Cash Pay Advance

Although the Consumer Federation has criticized the business as predatory, Nebraska industry representatives and State Banking Department officials say there appears to be substantial consumer demand. The Internet form of the business is illegal in Nebraska, which requires payday lenders to issue loans in person from physical sites and prohibits them from using electronic transactions. In Iowa, Internet loans are legal only if the lender has a licensed place of business in the state, said Medved, who also operates payday advance businesses in Iowa and five other states. In August, banking officials ordered a company called One Click Cash to cease business in Nebraska after it received 18 complaints from across the country, including two in Nebraska. The National Consumer Federation has said cyberspace payday loans are open to abuse and difficult to police because many lenders obscure their locations to sidestep state regulations governing payday loans. Find Out More

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