SANTA FE – The debate over capping brand new Mexico interest levels on storefront loans may not be over yet.

SANTA FE – The debate over capping brand new Mexico interest levels on storefront loans may not be over yet.

Proposition renews debate on pay day loans

By Dan Boyd / Journal Capitol Bureau Chief
Sunday, October 4th, 2020 at 12:05am

Copyright В© 2020 Albuquerque Journal

36 months after state lawmakers authorized a bill that capped interest that is small-loan at 175%, a prominent Santa Fe-based think tank is proposing that the limit be lowered significantly – to 36% – and monetary literacy classes be produced a graduation need for twelfth grade pupils statewide.

Fred Nathan, executive manager of Think New Mexico, said the proposed modifications would allow state residents to better protect their individual funds.

“With the financial crisis triggered by the COVID-19 pandemic, New Mexicans are far more susceptible than in the past to predatory loan providers, enhancing the urgency among these reforms,” Nathan stated in a declaration.

But, the proposal might face tough sledding during the 2021 legislative session, as current proposals to reduce the attention price limit have actually neglected to gain traction during the Roundhouse.