Earlier this week while most of us were sleeping, the House passed HB 132, a cap on loan rates. As I’ve written before it wasn’t just another bill getting passed, it was a “no holds barred” push by Speaker Egolf and Representative Herrara for a legislative win. Whether you like the bill or not, the process that has been used to pass this bill makes New Mexico look like a banana republic.
During the debate the bill’s lead sponsor, Rep Herrera (D-41), conceded that lenders cannot make a profit – or even breakeven – on small dollar unsecured loans under the terms of her bill.
We couldn’t agree more.
HB 132 Matters Because Every Citizen of New Mexico Deserves Access to Some Form of Credit
Unexpected expenses and financial challenges are a part of life. When an unplanned medical bill or home repair pops up, small dollar loans can be a lifesaver. For many families, these loans provide a critical lifeline.
New Mexico Legislators Must Protect Access to Credit for New Mexico Workers and Families
If passed it would make it harder – sometimes even impossible – for low-income New Mexicans to access the credit options they need.
Consumer credit rate caps will drive responsible loan providers out of the market, and will deny tens of thousands of New Mexicans with less than perfect credit access to the only form of credit they may have.
It’s essential that all New Mexicans have access to resources like credit to survive and thrive.
Contact Your Senator and Tell Them Vote NO on HB 132 to Preserve Access to Credit and Consumer Choice
Call the Roundhouse switchboard at 505-986-4600 and ask for your Senator’s office.