HOUSE DEMOCRATS NEWS
A law to protect the financial security of low-income New Mexicans by preventing predatory lending practices passed the House floor with a bipartisan vote of 51-18.
HB 132 reduces the maximum annual interest rate for loans made under the New Mexico Bank Installment Loan Act and New Mexico Small Loan Act from 175 percent to 36 percent. The legislation would also limit maximum loan terms for loans of $10 thousand or less to a period of 24 months.
“HB 132 would protect hardworking New Mexican families from abusive loan rates that trap them in a cycle of debt,” said Representative Susan Herrera (D-Embudo). “This is an important step to improve financial stability for our neighbors who are struggling to make ends meet.”
“This is a historic achievement that marks years of efforts to protect working people across the state from predatory lending practices,” said Speaker of the House Brian Egolf (D-Santa Fe). “By capping interest rates on installment loans, we can help more working families get ahead.”
HB 132, sponsored by Representative Herrera, Speaker Egolf, and Representatives Joy Garratt (D-Albuquerque), Daymon Ely (D-Albuquerque), and Phelps Anderson (DTS-Roswell), now makes its way over to the Senate.