What are the federal regulations for interest rates?

Interest rates are regulated by the federal government and vary depending on the type of loan and the financial institution offering the loan. In Nebraska, most consumer loan interest rates are regulated by the Federal Reserve Board under the Truth in Lending Act. This act states that the annual percentage rate (APR) of interest charged on a loan must be disclosed to the borrower before the loan is finalized. The APR must be the same for all borrowers and cannot be increased without prior written notice from the lender. The Truth in Lending Act also governs the interest rates for credit cards, requiring lenders to provide an APR and to clearly disclose the cost of a loan in advance. In Nebraska, the maximum interest rate that a lender may charge for a consumer loan is limited to a maximum of 16%. In addition to state and federal regulations, some counties and cities in Nebraska may have their own interest rate regulations. It is important for borrowers to check with their local government to see what regulations may apply to their loan. Finally, it is important to note that Nebraska does not have usury laws, meaning that lenders may charge whatever interest rate they deem appropriate.

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What are the federal regulations for interest rates?

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