Albuquerque, New Mexico — Attorney General Patricia Madrid, following a legislative failure, wants to cap payday loan rates in New Mexico using her rule-making authority.
After a series of hearings, Madrid said she wanted to set a 54 percent limit on payday loans and borrowers would have at least four months to pay back to the loan. Current payday loans generally charge rates in the hundreds of percent and have a payback term of 14 to 30 days.
Madrid conceded her latest effort to regulate the online payday loan industry faces a likely legal challenge. But she also said legislative allies already are at work on cap proposals for the next state legislative session, starting in January.