The Nevada Supreme Court recently made a decision regarding a proposed ballot initiative aimed at regulating high-interest lending practices in the state. The court ruled that the initiative was too broad and violated the law that requires ballot initiatives to focus on a single subject. As a result, the broader version of the petition was struck down.
However, a narrower version of the initiative survived an initial legal challenge and is currently awaiting approval. This version of the petition calls for imposing a 36 percent cap on interest rates for certain types of high-interest loans, such as title loans and payday loans. These loans often come with exorbitant interest rates, with Nevada having the fifth-highest average interest rate for payday loans in the country at 548 percent.
The rejected broader petition included provisions to increase the amount of money protected from seizure in a person’s bank account and weekly wages for unpaid debts. It proposed protecting up to $5,000 in a bank account and raising the exempt amount of weekly wages to $850. The Supreme Court deemed these provisions as not being functionally related and germane to the overall purpose of the initiative.
If the narrower version of the initiative passes legal scrutiny and gathers the required number of signatures by November 20, it will be presented to the 2025 Legislature for consideration. If the Legislature does not pass the initiative, it will be included on the 2026 general election ballot.
The organization behind the initiative, Stop Predatory Lending NV, has faced challenges in collecting signatures for the broader petition but has been allowed to gather signatures for the narrower version. High-interest lending has been a contentious issue in Nevada, with efforts to cap interest rates facing opposition from lending companies like Dollar Loan Center and MoneyTree.
Despite the ongoing legal battles and opposition from lending companies, advocates for regulating high-interest lending remain hopeful that the initiative will eventually make its way to the Legislature or the ballot. The outcome of this initiative could have significant implications for borrowers in Nevada and the future of high-interest lending practices in the state.
