House Votes to Restrict New Mexico Payday Advance Loans
The House of Representatives voted unanimously Monday to restrict payday loan companies in New Mexico.
While the House has passed similar legislation in each of the past four years, this is the first time an agreement has been reached with the Senate.
The bill that will move over has the support of Sen. Bernadette Sanchez, D-Albuquerque, who had worked to reject House bills in past years because she did not believe they went far enough in regulating the faxless payday advance industry.
The bill would limit loan periods to a maximum of 35 days, with no renewals or rollovers. Those unable to repay their bad credit payday loan within the payment period would be able to enter into a payment plan of at least 130 days at no extra cost.
Charges would be limited to $15.50 per $100 borrowed, plus 50 cents to create a new verification database. Loans would be limited to 25 percent of a borrower’s monthly income, and consumers could not take out a new payday cash loan while in any payment plan.