KUNM

storefront lending

taberandrew via Flickr / Creative Commons License

Lawmakers voted Wednesday to study a plan that would make small dollar loans available to state employees. At 26 percent interest, the loans would offer options for low income borrowers who have traditionally turned to high interest storefront loans.

Storefront Lenders Succeed In Squashing Rate Caps

Jan 27, 2016
Johnathan Rolande via Flickr / Creative Commons License

Storefront lenders scored a win in Santa Fe Tuesday when the House Business and Employment Committee unanimously sidelined an effort to cap interest rates on installment loans. 

spartacus pustota via flickr

Senators Martin Heinrich and Tom Udall joined 28 other Democratic senators and two independents in sending a letter Friday to the director of the Consumer Financial Protection Bureau. They support new federal rules that would require lenders to check if customers could actually pay back their loans. The rules would also restrict the ways creditors could collect on debts.

Public Health In The 2015 Session

Mar 24, 2015
Arianna Sena

Psychiatric Meds In School—PASSED

ChrisGoldNY via Flickr

KUNM Call In Show 3/5 8a: 

Critics say short term loans trap New Mexicans in a cycle of poverty. Often borrowers end up paying more than the amount of the loan in interest. But lending industry supporters say people who take out storefront loans know exactly what they are getting into and that there aren't other easy ways to get small loans quickly.

State lawmakers in Santa Fe are considering changes to how the storefront loan industry is regulated. Should we let the free market work it out or do New Mexicans need protection from what some call predatory lending? 

Lawmakers Blocking Loan Cap Got Industry Money

Feb 20, 2015
taberandrew via Flickr / Creative Commons License

Five of the six senators who opposed legislation to cap what lenders can charge borrowers on certain types of loans took thousands of dollars in campaign money from the industry in 2013 and 2014, state records show.

Lawmaker Wants To Cap Storefront Lending Rates

Feb 2, 2015
Daquella manera via Flickr

The average person who takes out a short-term loan borrows about $650 and pays about 340 percent interest.  But rates on payday, title and installment loans would be capped at 36 percent if reformers get their way during the 2015 legislative session.

There were 657 small loan companies in New Mexico in 2013, many charging more than 175 percent, according to a report from the state Regulation and Licensing Department.