Bipartisan Bill to Rein in Predatory Loan Practices Passes House
Santa Fe, N.M. - Tonight, the House of Representatives passed House Bill 347, a bill to rein in predatory loan practices, in a sweeping bipartisan vote of 64-2. Sponsored by Representatives Patty Lundstrom (D-Gallup), and Debbie Rodella (D-Española), HB 347 is part of a bipartisan effort to limit the fees and charges financial institutions add to installment loans, also known as payday loans, and to implement financial literacy programs in the state.
"We need to make sure the consumer financial market works for everyday New Mexicans, not just the well-connected,” said Rep. Lundstrom. “New Mexicans deserve access to loans with fair interest rates, without hidden risks and outrageous fees attached.”
“This bill closes loopholes that companies use to defeat payday loan reforms,” said Rep. Rodella. “This bipartisan vote is an important step to ensuring that New Mexico’s families have access to the money they need without fear of falling victim to predatory lending practices.”
In New Mexico, loans are regulated by the Small Loan Act of 1955, which does not place limits on what fees and rates payday lenders can charge. HB 347 will ensure consumers are not subjected to unfair, deceptive, and abusive practices.