A new bill in the New Mexico State Legislature is causing concern for customers of the traditional installment lending industry. HB 132 has been described by veteran lenders as “the worst bill that we have ever seen” and, if passed, is likely to cause significant and ongoing hardship for New Mexicans.
The bill’s restrictions are such that it would mean the end of licensed, traditional installment lending in New Mexico, affecting jobs and livelihoods, but, more significantly, denying New Mexican individuals and families who rely on small dollar loans, the ability to choose a traditional, safe and affordable loan option.
Here are the voices of just a few New Mexicans on what life without traditional installment loans would mean to them. The deep concern and anguish felt by these borrowers is obvious.
How_have_small_loans_helped_you_New_Mexico from New Mexico Borrowers on Vimeo.
With the end of the legislative session imminent, policymakers in New Mexico should not be hasty in their deliberations. Passing this legislation will leave tens of thousands of New Mexicans with significantly diminished financial capability. They will have no way to meet financial emergencies, or to consolidate their debts, or to make necessary or desired purchases. What is more, they will have no way to build the credit scores that are essential to financial mobility.
NM Policymakers should vote NO on HB 132.