New Mexico House approves bill aimed at predatory lending

Published February 8, 2022 2:31 PM

By MORGAN LEE
Associated Press

SANTA FE, N.M. (AP) — New Mexico House legislators have approved legislation aimed at discouraging predatory lending by lowering the state cap on annual interest rates on storefront loans. Democratic state Rep. Susan Herrera of Embudo is sponsoring the bill that would lower the maximum interest rate on storefront loans to 36%. The bill won House approval on a 51-18 vote Monday nigh and now moves to the Senate for consideration. Advocates for the new cap on interest rates say it would ensure borrowers don’t fall into vicious cycles of debt that contribute to poverty in New Mexico. Opponents warn that small installment loans may dry up for consumers with no alternatives.

Article Topic Follows: AP New Mexico

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