Dear Margaret E,

 

Our legislation to cap the annual interest rates of small loans at 36% is at a critical juncture, and we need your help.

 

In our update on Monday, we told you that Senate Bill 66 was headed into its final hearing in the House Judiciary Committee. Unfortunately, in that committee the bill was hijacked by an army of lobbyists for the predatory lending industry, who convinced a majority of the committee members to amend the bill and increase the maximum annual interest rate from 36% to 99%.

 

The House passed the bill late last night. They reined in the House Judiciary Committee amendment slightly, by limiting the 99% cap to loans of under $1,100. Unfortunately, around half of all small loans in New Mexico are under $1,100.

 

As the Santa Fe New Mexican editorialized yesterday, we still have a final chance to restore the 36%.

 

The Senate is extremely unlikely to accept the changes that have been made to the bill in the House, which means that it will go to a conference committee to try to resolve the differences between the chambers. Please email your legislators and urge them to restore the 36% cap, as passed by the Senate!

 

When they are determining what policies best serve the people of New Mexico, lawmakers ought to look to their constituents, not to lobbyists for special interests. A January 2020 Morning Consult poll found that 71% of New Mexicans support capping interest rates at 36% - and many of those who oppose a 36% cap do so because they believe it is too high.

 

A cap of 99% for loans under $1,100 would mean that New Mexico would continue to allow some of the highest interest rates in the nation for loans of this size. A low-income New Mexican who borrows $600 would have to pay back $1,194.

 

New Mexicans deserve better.

 

 

Fred, Kristina, Othiamba, and Susan

Think New Mexico

1227 Paseo de Peralta, Santa Fe, NM  87501  (505) 992-1315  www.thinknewmexico.org

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