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NM SB388

NM SB388
Installment Loan Fee Limits


summary

Introduced
01/27/2017
In Committee
02/03/2017
Crossed Over
Passed
Dead
03/18/2017

Introduced Session

2017 Regular Session

Bill Summary

AN ACT RELATING TO FINANCIAL INSTITUTIONS; LIMITING FEES AND CHARGES FOR CERTAIN INSTALLMENT LOANS; PROVIDING FOR REPORTING TO CREDIT AGENCIES; AMENDING CHAPTER 56, ARTICLE 8 NMSA 1978, THE NEW MEXICO SMALL LOAN ACT OF 1955 AND THE NEW MEXICO BANK INSTALLMENT LOAN ACT OF 1959; REPEALING SECTIONS OF THE NEW MEXICO SMALL LOAN ACT OF 1955; CREATING THE FINANCIAL LITERACY FUND; MAKING AN APPROPRIATION.

AI Summary

This bill limits fees and charges for certain installment loans in New Mexico. It amends the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959 to cap certain fees, such as processing and handling fees, and limits the circumstances under which lenders can charge overdraft fees. The bill also requires lenders to report loan terms and borrower performance to nationally recognized consumer reporting agencies. Additionally, the bill creates a financial literacy fund and directs the state's financial institutions division to develop and implement a financial literacy program. The state is given exclusive jurisdiction over the terms and conditions of permitted installment loans, preempting local regulation.

Committee Categories

Justice, Transportation and Infrastructure

Sponsors (1)

Last Action

[LD 18] Referred to Senate Judiciary (on 02/03/2017)

bill text


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