SANTA FE, N.M. (AP) - The Latest on efforts to rein in payday loan industry in New Mexico (all times local):
3 p.m.
A panel of House lawmakers has reached what supporters are touting as a compromise as consumer advocates push to rein in the payday and title loan industry in New Mexico.
The measure approved Friday by the House Business and Industry Committee calls for banning small loans with payback periods under 120 days. It would also cap interest rates at 175 percent on certain installment loans issued by lenders that are not federally insured.
Consumer advocates had been pushing for a 36 percent interest rate cap.
Some lawmakers acknowledged that the bill didn’t go that far but that it was a step in the right direction to address consumer advocates’ complaints of unscrupulous lending practices that target low-income New Mexicans.
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3 a.m.
Bills aimed at regulating payday and title loan lenders in New Mexico are up for a hearing before a panel of House lawmakers.
One of the measures would cap rates at 36 percent on small loans issued by lenders that are not federally insured, while another calls for a much higher interest rate.
Short-term, high-interest lending practices have been a target of consumer advocates for decades in New Mexico, but efforts to rein in the business fall flat year after year.
The industry says it’s one of the few options for low-income New Mexicans who find themselves in a bind and are ineligible for traditional credit. But consumer advocates describe the lending practices as unscrupulous.
Some 30 states already have banned auto title loans, and a dozen have capped rates at 36 percent or less.
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