. . . “The payday lending industry wants to avoid regulation and remain free to charge unreasonably high interest rates on loans to New Mexico consumers,” Richardson said. “That is unacceptable, and we will continue to help New Mexicans who are struggling to make ends meet.”
The state Regulation & Licensing Department wrote the new regulations, based on input from the Attorney General, that are designed to do the following:
Require all payday loans in New Mexico to be interest free; lenders may not charge more than a $15.50 fee per $100 borrowed.
Stop the cycle of debt for consumers of payday loans by prohibiting unlimited loan renewals and giving consumers the sole discretion to renew and, if they choose to renew, they can renew only twice.
Consumers will have sole discretion to enter into a free and longer payment plan – a minimum of 130 days – with no additional fees – after a second renewal.
Limit the amount of all outstanding payday loans a consumer has throughout the state with all licensed lenders to 25 percent of the consumer’s gross monthly income. The new database will monitor compliance with this rule.
Launch an aggressive consumer advocacy and financial literacy program to educate the public and inform consumers that they do not have to repay payday loans made by anyone who is not duly licensed to make such loans.
What I want to know is why isn’t our Democratic Governor (Brad Henry) or Attorney General (Drew Edmondson) doing what the folks in New Mexico are doing to fight predatory payday loans. Why even bother electing democrats in Oklahoma when they are such tools for the rich?