New Mexico Governor Adamant About Payday Advance Lending LegislationBy J.J. Cameron
Payday Loan Writer
Gov. Bill Richardson isn't pleased. He says his administration will tackle what the Legislature declined to do during its just completed session: regulate payday lending.
Richardson has directed the state Regulation and Licensing Department to issue rules that will do much of what had been proposed in a bill that died when the legislature adjourned last week.
The regulations will establish caps on fees as well as limit the number of cash loan renewals and rollovers of payday loans.
In addition, The Albuqerue Tribune reported that the administration is imposing a moratorium on new licenses for payday lenders.
Critics contend payday lenders target the poor and that consumers can become trapped with debts because of the high-cost loans. The governor's regulatory attempt is separate from proposed rules developed by Attorney General Patricia Madrid to cap interest rates on payday loans and impose other restrictions on lending practices. However, lenders have filed lawsuits challenging the regulations by the attorney general.
Regulation and Licensing Superintendent Edward Lopez said the agency's Financial Institutions Division licenses cash advance lenders and has the authority under the state's Small Loan Act to regulate their lending practices.
Lopez said details of the regulations have not been worked out. Initially, the proposals will be published for public comment and then the agency will adopt and implement final loan regulations.
The regulations will take at least a month or two to implement, said William Verant, director of the Financial Institutions Division.
Richardson said he preferred to change state law to make lending restrictions permanent but decided to act administratively after legislation failed.
"We can go back to the Legislature to make changes in state law, but I'm not going to wait for the Legislature to take action," Richardson said at a news conference.
February 25th, 2006 at 4:27 pm
[…] Jessica hasn’t spent ALL her time in Sante Fe filming a movie and trying to shop in peace. She squeezed in time to make political waves along the way. Simpson took a break from filming her latest film to dine with Gov. Bill Richardson, his wife and others at the governor’s mansion. The governor, meanwhile, took a break from his recent crusade against payday loans. […]
March 29th, 2006 at 9:44 am
[…] Then, Simpson dined with Governor Bill Richardson. The meeting was mainly to focus on the burgeoning New Mexico film industry - but we wouldn’t be surprised if this consumer advocte mentioned his stance on payday loans, as well. […]
May 19th, 2006 at 9:16 am
[…] It's no secret that New Mexico Governor Bill Richardson isn't a big fan of payday loans. Following months of industry criticism, Richardson and Attorney General Patricia Madrid announced regulations yesterday, all meant to curtail predatory payday advance lending in the state. […]
May 21st, 2006 at 12:24 pm
[…] A list of new payday lending regulations Gov. Bill Richardson and Attorney General Patricia Madrid unveiled Thursday might change their minds. While the officials do not propose an interest cap on the New Mexico payday loan industry, Richardson and Madrid do propose a flat fee of up to $15.50 for every $100 borrowed, whether on a new loan or a renewal, as well as limiting the size of the loan to 25 percent of the borrower's gross monthly income. […]