Bill capping small loan interest rates signed by the governor

SANTA FE—After years of hard work by advocates and community members fighting for fair credit for all New Mexicans, a bill requiring a 36% APR cap on storefront loans passed was signed by Governor Michelle Lujan Grisham today.

“For years so many advocates and community members have fought for a fair and affordable interest rate cap. New Mexican families who’ve experienced crushing financial hardships because of predatory loans have come forward to tell their stories and the stories of their communities over and over, year after year. Today all that hard work has paid off.” said Lindsay Cutler, an attorney with the New Mexico Center on Law and Poverty. “We are incredibly grateful to the leadership of the sponsors of HB 132, and to the governor for signing this important legislation for New Mexico families.” 

The law goes into effect January 1, 2023.

65% of lenders in New Mexico are located within 15 miles of Tribal lands. In McKinley County alone, there are more than 40 storefront lenders that made 69,618 loans in 2020 – nearly one loan for every resident. The Navajo Nation President and Council have expressed their strong support for a 36% cap.

New Mexico currently has one of the highest interest rate caps on installment loans in the country. Lenders across the state are taking advantage of triple-digit interest rates and draining hundreds of millions of dollars from hardworking New Mexicans each year. A family who borrows a storefront loan for just a few hundred dollars at the current rate cap of 175% APR will end up paying hundreds, even thousands of dollars in interest and fees.

Bill capping small loan interest rates passes the Legislature

Bill awaits the governor’s signature

SANTA FE—After years of hard work by advocates and community members fighting for fair credit for all New Mexicans, a bill requiring an all-inclusive 36% APR cap on storefront loans passed the Legislature today.

House Bill 132 passed the House by a vote of 51 to 18. It passed the Senate by a vote of 19 to eight.

“For decades New Mexico has allowed huge out-of-state companies to charge hundreds of millions of dollars in interest, specifically targeting our native communities, but thanks to the hard work of so many partners, of the sponsors, and of the Legislature, we may finally pass real consumer protections for our people,” said Austin Weahkee from NM Native Vote. 

Governor Lujan Grisham has issued an executive message and it is expected that she will sign the bill. If the bill is signed into law, it will go into effect on January 1, 2023.

“A fair interest rate cap for all New Mexicans has been a long time coming,” said Lindsay Cutler, an attorney with the New Mexico Center on Law and Poverty. “We are incredibly grateful to the leadership of the sponsors of HB 132, Representatives Herrera, Garratt, Anderson, Ely and Speaker Egolf, as well as Senators Duhigg and Soules for their hard work to get the bill through the legislative process. For years so many advocates and community members have fought for this day. New Mexican families who’ve experienced crushing financial hardships because of predatory loans have come forward to tell their stories and the stories of their communities over and over, year after year. Today all that hard work has paid off.” 

65% of lenders in New Mexico are located within 15 miles of Tribal lands. In McKinley County alone, there are more than 40 storefront lenders that made 69,618 loans in 2020 – nearly one loan for every resident. The Navajo Nation President and Council have expressed their strong support for a 36% cap.

New Mexico currently has one of the highest interest rate caps on installment loans in the country. Lenders across the state are taking advantage of triple-digit interest rates and draining hundreds of millions of dollars from hardworking New Mexicans each year. A family who borrows a storefront loan for just a few hundred dollars at the current rate cap of 175% APR will end up paying hundreds, even thousands of dollars in interest and fees.  

“No one should be allowed to charge triple-digit interest rates,” said Ona Porter, Founder Emerita of Prosperity Works. “No one should have to choose between paying their rent and making payments on a triple-digit loan that often keeps them trapped endlessly. New Mexicans deserve access to fair and responsible credit.”

TOMORROW: Support a 36% APR rate cap on storefront loans!

New Mexicans Deserve Fair Credit!

We need your help to get a bill requiring an all-inclusive 36% APR cap on storefront loans passed by the House Consumer and Public Affairs Committee TOMORROW at 10:00 a.m. 

Please attend the hearing and give public comment to ensure that New Mexico’s laws prevent abusive and predatory financial practices.

New Mexico has one of the highest interest rate caps on installment loans in the country. Lenders across the state are taking advantage of triple-digit interest rates and draining hundreds of millions of dollars from hardworking New Mexicans each year. A family who borrows a storefront loan for just a few hundred dollars at the current rate cap of 175% APR will end up paying hundreds, even thousands of dollars in interest and fees.  

You might share a personal story with legislators about why no one should be allowed to charge triple-digit interest rates. You might also share why you support the bill. For example: “I urge the Representative to support House Bill 132 for an all-inclusive 36% cap on storefront loans. No one should have to choose between paying their rent and making payments on a triple-digit loan. New Mexicans deserve access to fair and responsible credit.”

HB 132 Summary

House Bill 132, sponsored by Representatives Herrera, Garratt, Anderson, Ely and Speaker Egolf would require an all-inclusive 36% APR cap on storefront loans and ensure that New Mexico’s laws prevent abusive and predatory financial practices. 

Public Comment Instructions

When: Tomorrow January 29 at 10:00 a.m. 
How: Click the link below to join the webinar.

https://us02web.zoom.us/j/87885692969

Or One tap mobile : US: +13462487799,,87885692969# or +16699009128,,87885692969#

Or Telephone: Dial(for higher quality, dial a number based on your current location):

US: +1 346 248 7799 or +1 669 900 9128 or +1 253 215 8782 or +1 312 626 6799 or +1

646 558 8656 or +1 301 715 8592

Webinar ID: 878 8569 2969

International numbers available: https://us02web.zoom.us/u/ksTm89qpc

What to Expect During the Hearing

The committee will be taking public comment. The chair of the committee will announce the bill and ask who supports HB 132. At that time, to provide a comment use the Zoom reaction button and raise your hand. The chair will call your name and unmute your zoom when it is your turn to speak.

Tips

  • Keep your remarks brief and to the point.
  • If you have a personal story about high interest loans, please share it.
  • Close the Legislature’s webcast page when you give your comment so there is not an echo during your remarks.
  • Make sure you are not muted when it is your turn to speak.
  • Do not rely on your phone or computer for notes. Write them down on a piece of paper or print them out in case your computer or phone freeze.
  • Close other tabs and windows in your browser to make sure your connection is good.
  • If your microphone or internet connection doesn’t work then be prepared to call in on your phone using the number at the same link above.