HB 59 would exempt fintech payday loans from New Mexico’s lending laws and interest rate limits. The bill is based on the model law by the conservative American Legislative Exchange Council (ALEC). It offers a fee limit that would still result in triple digit APRs and mounting fees, places no cap on purportedly voluntary “tips” that people are manipulated into paying, and uses a slew of meaningless protections as cover for exempting a broad swath of cash advance loans from New Mexico’s recently enacted interest rate limits and strong consumer protection laws.
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