Bill > SB129

This bill makes the following key changes: 1. It increases the loan amount threshold from $5,000 to $10,000 for loans that must be made under the New Mexico Bank Installment Loan Act of 1959 or the New Mexico Small Loan Act of 1955. 2. It reduces the maximum permitted annual percentage rate (APR) for loans made under the New Mexico Small Loan Act of 1955 from 175% to 36%, with an exception that allows the maximum APR to increase up to 36% plus the amount by which the prime rate exceeds 10% if the prime rate is above 10% for 3 consecutive months. 3. It requires lenders, other than federally insured depository institutions, to have a minimum of 4 substantially equal installment payments for loans made under the New Mexico Bank Installment Loan Act of 1959. 4. It expands the disclosure requirements for lenders under the New Mexico Small Loan Act of 1955, including reporting on various loan performance metrics. 5. It requires lenders to report both positive and negative borrower performance to consumer reporting agencies for certain types of loans made under the New Mexico Small Loan Act of 1955. Overall, the bill aims to provide more consumer protections and transparency around small dollar loans in New Mexico.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=129&year=22