Bill to Cap New Mexico Payday Loan Interest Rates Moves Forward
Inside Subprime: March 28, 2019
By Lindsay Frankel
The bill limits payday lending interest rates to 36 percent.
It’s sponsored by Rep. Christine Chandler, D-Los Alamos, together with Rep. Susan Herrera, D-Embudo and Rep. Patricia Roybal Caballero, D-Albuquerque.
“All New Mexicans deserve a chance to more fully participate in our state’s economy,” said Christopher Sanchez, supervising attorney for Fair Lending at the New Mexico Center on Law and Poverty, to an NPR affiliate after those regulations were put into effect. “We hope to see additional regulations that would improve disclosures and language regarding loan renewals so that all borrowers can understand the terms of their loans.”
But the Associated Press reports that there are efforts in New Mexico to provide payday loan alternatives. “A number of local governments already are offering loans with moderate interest rates for public employees with little or no credit history,” according to the AP. But those local loans are only available to the government and larger businesses.