Republicans in House Regulatory and Public Affairs fail to protect our most vulnerable New Mexicans from economic ruin
HB 24 and HB 36 tabled on party line vote with every Republican voting to table
SANTA FE, NM – Today, House Republicans voted to table HB 24 and HB 36 that would cap high risk small loans at 36%. HB 36 is sponsored by Representative Gail Chasey and HB 24 is sponsored by House Democratic Caucus Chair, Representative Patricia Roybal Caballero. Every Republican in the House Regulatory and Public Affairs Committee voted to table the bills in order to wait for an industry bill.
“As public servants we owe it to the people of New Mexico to stop any predatory lender from putting a family who is under duress into further financial ruin,” said Representative Gail Chasey. “What these predatory lenders do is unconscionable. For the sake of New Mexico’s families who are being conned, we must end 200 – 2000% APR interest rate lending scams in our state. Money that is going to out-of-state- corporations should remain in the pocket books of hard working New Mexicans. Currently the U.S. Military and 18 states in our nation have passed APR caps of 36% or less. We have a duty to protect all New Mexicans who are the targets of these lenders. I am very disappointed that my Republican colleagues failed to act on the will of 85% of New Mexicans who favor this cap. It has not partisan issue in other states, and it should not be here.”
“These storefront lenders are an industry that preys on New Mexico’s most vulnerable and traps them in poverty, said Democratic Caucus Chair,” Representative Patricia Roybal Caballero. “Typical storefront borrowers are the working poor, single moms and veterans – and we cannot stand by and allow these predatory lenders to put these families into financial ruin. New Mexico’s nation-leading poverty rate has grown in tandem with our storefront loan industry, and had a 400% average APR on storefront loans in 2013. High cost small loans turn temporary financial shortfalls into long-term financial crises and we owe it to our communities to stop this. Republicans should never have played politics with the future of New Mexico’s families – campaign season is over it’s time to work together to ensure a more secure economy for New Mexico.”
HB 24 and HB 36 will remain in the House Regulatory and Public Affairs Committee.