SANTA FE, NM—The New Mexico Financial Institutions Division will hear public comment in Santa Fe today on its proposed regulations for HB 347, which imposes a 175% interest rate cap on small loans. The law, passed during the 2017 New Mexico legislative session, also ensures that borrowers have the right to clear information about loan total costs, allows borrowers to develop credit history via payments made on small-dollar loans, and stipulates that all such loans have an initial maturity of 120 days and cannot be subject to a repayment plan smaller than four payments of loan principal and interest.
While the law and proposed regulations signal progress for fair loan terms, much more work remains to be done to ensure a more inclusive economy for all New Mexicans. The New Mexico Center on Law and Poverty will urge the FID to revise the proposed regulations to improve disclosures and language regarding loan renewals so that all borrowers can understand the terms of their loans. The Center will also suggest the regulations include improved methods of data collection, expanded language accessibility, and greater protections for borrowers of refund anticipation loans.
The FID’s proposed regulations can be found here: www.rld.state.nm.us/financialinstitutions/
The Center’s comments on the proposed regulations can be found here: https://wp.me/a7pqlk-10H
The Center’s suggested changes to the proposed regulations can be found here: https://wp.me/a7pqlk-10I
FID Hearing on proposed HB 347 regulations
Tuesday, April 3, 2018 at 1:30 p.m.
New Mexico Regulation and Licensing Department
Toney Anaya Building
Rio Grande Room on the 2nd Floor
2550 Cerrillos Road
Santa Fe, NM 87504
New Mexico Center on Law and Poverty
Members of the public