New Mexico’s storefront lending industry will soon be subject to more oversight.
A bill signed Wednesday by governor Michelle Lujan Grisham will require more accountability and transparency from lenders.
Small loans companies in the state can legally charge interest rates as high as 175 percent.
Many of those companies are actually from out of state, and the money they make follows them, said Ona Porter of Prosperity Works.
“It’s a hugely extractive industry in our state, so not only are they exploiting very limited income people they also are taking millions of dollars out of our state every year,” Porter said.
The new legislation will require lenders to better track the number of loans given, their amounts, and who is taking out those loans.
Advocates hope being able to see this data will motivate legislators to lower interest rates in the future.
There are currently 597 small loans companies working with New Mexico.