The Legislature has just tabled a bill that would let the public decide if we want to rein in this exorbitant lending practice with a 36% interest cap. New Mexico legislators need to protect our financially vulnerable population and stop protecting the legalized loan-sharking business.
Why is this important?
Our state is one of the poorest in the country and I know how hard it is to make loan payments that you just can't afford. The storefront lending business is built on aggressively marketing fast and easy cash then encouraging loan rollovers that boost payments well beyond what borrowers can afford. The default rate has caused an estimated 4 out of 10 car title borrowers to lose their cars. We just can't afford 175%, 300% and higher loan rates.
