New Mexico <36% APR CAP Passes. Inevitable?

Published: Thu, 02/17/22

What do YOU think? Is a national <36% APR CAP inevitable? Let me know...

Interest rates on installment loans

A bill limiting interest rates on installment loans to 36 percent is on its way to Gov. Michelle Lujan Grisham after the House concurred with a Senate-amended version of HB 132.

After concurrence was approved in the House, supporters began to applaud and cheer but were swiftly silence by House Speaker Brian Egolf, D-Santa Fe.

While the bill caps interest rates on "payday" loans, it also increases the maximum amount of such loans to $10,000 from $5,000 for up to two years. It also limits accrual of interest and bars wage garnishment for repayment.

Supporters celebrated the bill's provisions targeting predatory lending and collection practices by the industry, while critics had warned that it would raise barriers to credit for people who may not be eligible for loans from banks or credit unions.

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