LINCOLN — Opponents of a measure seeking to cap loan rates for payday lenders have struck out in court, meaning the proposal will stay on the Nov. 3 ballot.
The Nebraska Supreme Court on Thursday ruled against Trina Thomas, the owner of Paycheck Advance, who had objected to using the term “payday lender” in describing the measure on the ballot. The court said the term is known by the public and commonly used, even in the industry.
A day earlier, Lancaster County District Judge Robert Otte dismissed a legal challenge brought by Brian Chaney of Omaha. That decision followed the dismissal of a separate case brought by Paul Bencker Sr. of Omaha. Both men have ties to the quick-cash industry.
Aubrey Mancuso of Nebraskans for Responsible Lending described the legal challenges as “a desperate tactic” to block the measure.
“The payday loan industry doesn’t believe they can win in the court of public opinion so they’ve filed these Hail Mary lawsuits to try to stop voters from having their say,” she said.
Chaney’s challenge sought to have the measure removed from the Nov. 3 ballot for lack of signatures. He offered affidavits from 188 people who said they wanted to withdraw their signatures from the petition to put the measure on the ballot. If they were removed, the petition no longer would meet the requirement to have signatures from 5% of registered voters in each of 38 counties.
Otte ruled that, under state law, the withdrawals should have been filed before the petitions are submitted for signature verification. He also questioned the credibility of the affidavits, which were identical and were signed five to eight months after people signed the petition.
Bencker’s case claimed that the ballot measure contains more than one subject, in violation of the Nebraska Constitution, and that it would put payday lenders in violation of state usury laws.
The court rejected both arguments, ruling that the various parts of the ballot measure all related to the same general subject. The order said that the issue regarding usury laws could not be addressed before the election.
Secretary of State Bob Evnen announced last month that the proposal had enough signatures to go before voters in the general election. Supporters collected well over the 85,628 valid signatures needed to qualify.
The measure would cap payday loans at a 36% annual interest rate. Such loans, also known as cash advances, check advances or delayed deposit loans, are a type of short-term, high-cost borrowing that people use to get small amounts of immediate cash.
The lenders typically charge a 15% fee, rather than traditional interest, for a short time period.
For example, a customer could write a $100 check dated two weeks into the future, and the lender would give that person $85 cash.
Photos: Our best staff images of September 2020
Photos: Our best staff images of September 2020
Pence arrives
Vice President Mike Pence arrives at Eppley Airfield in Omaha on Thursday, October 01, 2020. The vice president spoke at PVS Structures, a metal fabricator, in Carter Lake, Iowa as part of a Make America Great Again! campaign event.
Football Sunset
The sun sets over the David City Aquinas vs. Oakland-Craig football game at Oakland City Park in Oakland, Neb., on Friday, September 25, 2020. Oakland-Craig won the game 28-12.
Jump
Union Omaha's Elma N'For dribbles the ball against Richmond Kickers' defense.
Meal Time
Caleb Nissen, 19 months, eats dinner with his parents, Michael and Jessica Nissen, of Oakland, before the start of the David City Aquinas vs. Oakland-Craig football game at Oakland City Park in Oakland, Neb., on Friday, September 25, 2020. Oakland-Craig won the game 28-12.
Campaign
Charlene Ligon, chairwoman of the Sarpy County Democratic Party, introduces Jill Biden and Doug Emhoff at an event in Papillion on Saturday.
Spider Web
Paisley Gaver, 5, decorates her grandma’s yard for Halloween with stretchy spider webs in South Omaha on Friday, September 18, 2020.
Union Omaha New England
New England Revolution II's keeper Joseph Rice makes a save over the head of Union Omaha's Elma N'For.
Monarch
Some monarchs fly 3,000 miles to reach Mexico, where the insects overwinter.
Library
Debbie Cooley, of Omaha, visits the Omaha Public Library's Milton R. Abrahams branch on Monday, Sept. 21, 2020.
Millard South Bellevue West
Bellevue West's Ryan Rogers, right, hits Millard South's Taekwon Johnson, as he Johnson was trying to return a kick to start the second half.
Twirl
Millard North won the game 46-41 with a touchdown on the final play of the game. A Millard North baton twirler performs before the start of the Lincoln East vs. Millard North football game at Millard South High School in Omaha on Thursday, September 17, 2020.
Balance
Lincoln East's Austin Schneider (8) gets away from Millard North's Isaiah McMorris (8) in the Lincoln East vs. Millard North football game at Millard South High School in Omaha on Thursday, September 17, 2020. Millard North won the game 46-41 with a touchdown on the final play of the game.
Grand Jury
James Scurlock II has a tattoo that says, "Truth be told" on his arm as he answers questions about the charges filed against Jake Gardner in the killing of Scurlock's son, also named James.
Grand jury reaction
Protesters hug and celebrate the indictment of Jake Gardner on Tuesday at the corner of 50th Street and Underwood Avenue.
Focus
Elkhorn North's Hunter Richardson (1) looks to pass the ball in the Plattsmouth vs. Elkhorn North football game at Elkhorn High School on Friday, September 11, 2020. This is Elkhorn North's first home game in history. Plattsmouth won the game 34-7.
Sept. 11
A person runs with their dog near a display of American flags on Friday at Memorial Park in Omaha. The 2,977 flags represent the lives lost in the Sept 11 attacks 19 years ago.
Sept 11 Taps
John Herrmann, with the American Legion Honor and VFW honor detail plays Taps, during a 9/11 Remembrance Ceremony before the start of the Millard South and Millard West game.
Elkhorn-Waverly high school football
Elkhorn's Aiden Young dodges a tackle from Waverly 's Evan Canoyer.
Flu Shots
Reed Elias, 15, of Omaha, holds on to Molly, his family’s 8-month-old miniature schnauzer, while getting a shot from Kristy Gohr, a certified medical assistant, during a drive-thru flu shot clinic at a Methodist Physicians Clinic in Omaha on Thursday, Sept. 10, 2020.
September Images 1
The sun sets behind the Waverly stands during the Omaha Skutt vs. Waverly football game at Waverly High School in Waverly on Friday, September 4, 2020. Waverly won the game 17-7.
September Images 2
A Corona Extra display is seen wearing a mask at Wine, Beer and Spirits, 3435 Oak View Drive in Omaha on Tuesday, September 01, 2020.
September Images 3
Stalks of corn are browning near Winslow, Neb., on Wednesday, September 2, 2020.
September Images 4
Brothers-in-law Mark Policky, of Seward, and Kevin McGrath, of Lincoln, tailgate by themselves outside Memorial Stadium in Lincoln on Saturday, September 5, 2020. The Huskers were originally set to open the football season against Purdue at Memorial Stadium on Saturday. "This is kind of our protest against the Big Ten today," McGrath said. "We can't let the Huskers down," Policky added.
September Images 5
The parking to the east of Memorial Stadium has no tailgaters in Lincoln on Saturday, September 5, 2020. The Huskers were originally set to open the football season against Purdue at Memorial Stadium on Saturday.
September Images 6
A pedestrian walks in downtown Lincoln on Saturday, September 5, 2020. The Huskers were originally set to open the football season against Purdue at Memorial Stadium on Saturday.
September Images 7
People stand out on 42nd Street near Pacific Street to watch as Omaha police officers escort the body of Lincoln police officer Mario Herrera back to Lincoln after he died on Monday, September 07, 2020. Herrera was shot Aug. 26 while trying to serve a warrant.
September Images 8
Lincoln police officer Mario Herrera is escorted on Monday near 42nd and Grover in Omaha. Herrera passed away early Monday after being shot on duty August 26th.
September Images 9
Kristin Pehoviack and Audrey Lash feed sea lions at the new Owen Sea Lion Shores exhibit at the Omaha Henry Doorly Zoo.
September Images 10
Visitors get an up close view of a sea lion at the new Owen Sea Lion Shores exhibit at the Omaha Henry Doorly Zoo.
September Images 11
Elkhorn warms up as the sun starts to set before their game against Omaha Roncalli.
September Images 12
Todd Shannon, a parent of an Omaha Public Schools student speaks at a protest calling for the return of fall sports in the district.
September Images 13
A crosswalk sign is seen through a rain covered glass wall of a bus shelter on Farnam Street near 34th Strreet on Tuesday, September 08, 2020.
September Images 14
Omaha Roncalli's Quincy Evans stretches but can't pull down this third down pass in the third quarter in front of Elkhorn's Zach Leinen.
September Images 15
People watch the Omaha Skutt vs. Waverly football game from a hill outside the stadium at Waverly High School in Waverly on Friday, September 4, 2020.
September Images 16
Waverly takes the field for the Omaha Skutt vs. Waverly football game at Waverly High School in Waverly on Friday, September 4, 2020.
September Images 17
Millard South's Ryan Holdsworth (3) and Gage Stenger (12) celebrate a touchdown against Elkhorn South.
martha.stoddard@owh.com, 402-473-9583
