Rep. Lundstrom’s Bill to Rein in Predatory Loan Practices Clears Hurdle
Santa Fe, N.M. - Today, Representative Patty Lundstrom’s (D-Gallup) bill to rein in predatory loan practices passed the House Judiciary Committee by a 9-1 vote. HB 347 would limit the fees and charges financial institutions add to installment loans, also known as payday loans, and 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 Representative Patty Lundstrom (D-Gallup). “New Mexicans deserve access to loans with fair interest rates, without hidden risks and outrageous fees attached.”
Currently, 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.