Bill

Bill > HB172


NM HB172

NM HB172
Interest Rates On Certain Loans


summary

Introduced
01/31/2022
In Committee
Crossed Over
Passed
Dead
02/17/2022

Introduced Session

2022 Regular Session

Bill Summary

AN ACT RELATING TO LENDING; IMPOSING A CAP ON INTEREST RATES; VOIDING CONTRACTS THAT EXCEED THE INTEREST RATE CAP; LOWERING THE MAXIMUM ANNUAL PERCENTAGE RATE FOR LOANS PURSUANT TO THE NEW MEXICO BANK INSTALLMENT LOAN ACT OF 1959 AND THE NEW MEXICO SMALL LOAN ACT OF 1955; MAKING AN APPROPRIATION.

AI Summary

This bill imposes a cap on interest rates for certain loans in New Mexico. The maximum lawful rate of interest is set at 36% per year for loan amounts over $1,100, and 99% per year for loan amounts up to and including $1,100. The bill also voids any loan contract with an interest rate exceeding the cap. It lowers the maximum annual percentage rate for loans under the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955. The bill also appropriates funds for the financial institutions division to develop recommendations on appropriate interest rates and regulations for small loans to ensure continued access to credit while prohibiting predatory practices.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

House Consumer & Public Affairs Committee (00:00 2/8/2022 Room 317) (on 02/08/2022)

bill text


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