interest rates

taberandrew via Flickr CC

Small, fast loans often lead to a cycle of ever-deepening debt, according to the Consumer Financial Protection Bureau. Lawmakers in New Mexico are considering whether to regulate the industry here further during the 2021 legislative session. Senate Bill 66 would cap the rates and fees so that they're in line with national averages with the aim of helping people in jeopardy avoid a pit of debt they can't climb out of. KUNM caught up with reporter Jeff Proctor to talk about the effort.

Storefront Lenders Succeed In Squashing Rate Caps

Jan 27, 2016
Johnathan Rolande via Flickr / Creative Commons License

Storefront lenders scored a win in Santa Fe Tuesday when the House Business and Employment Committee unanimously sidelined an effort to cap interest rates on installment loans. 

ChrisGoldNY / via Flickr

KUNM Call In Show 3/5 8a: 

Critics say short term loans trap New Mexicans in a cycle of poverty. Often borrowers end up paying more than the amount of the loan in interest. But lending industry supporters say people who take out storefront loans know exactly what they are getting into and that there aren't other easy ways to get small loans quickly.

State lawmakers in Santa Fe are considering changes to how the storefront loan industry is regulated. Should we let the free market work it out or do New Mexicans need protection from what some call predatory lending? 

Payday Loan Cap On Hold Despite Prayers

Feb 4, 2015
ChrisGoldNY / via Flickr

Despite the vocal support of a group of religious leaders, a legislative panel decided on a party-line vote Wednesday to set aside two proposals (HB 24 and HB36) that would have limited interest rates on short-term loans.