New Online Guide Points New Mexicans to Affordable, Accessible Credit and Other Financial Resources

New Mexicans for Fair Lending has launched a new online resource guide to share information about how and where New Mexicans can access financial resources and affordable credit. New Mexicans for Fair Lending is a coalition of nonprofit organizations that successfully advocated for the enactment of a law protecting New Mexicans from predatory lenders. The Resource Guide is available at: https://www.prosperityworks.net/financial-resource-guide.html

On January 1, 2023, a new law took effect in New Mexico capping the maximum annual interest rate of loans $501-$10,000 at 36%. (Loans under $500 may also be subject to a fee of 5% of the loan amount that can be charged once every 12 months.) New Mexico’s interest rate cap is consistent with the federal Military Lending Act, which has capped the annual interest rate of loans to military service members and their families at 36% since 2006. The 36% annual interest rate cap is also consistent with the laws in a growing number of other states. In just the last few years, Montana, South Dakota, and Illinois capped annual interest rates on most small loans at 36%.

With the enactment of New Mexico’s 36% interest rate cap, some high-cost lenders that routinely charged triple-digit interest rates are no longer operating in the state.

The Resource Guide directs New Mexicans to many better options for meeting financial needs, including:

• Strategies for New Mexicans to lower their bills, including how to deal with debt collectors, and where to access free or low-cost legal resources;
• Information about how New Mexicans can access cash assistance and benefits to help cover the cost of food, housing, health care, child care, utility costs, and funeral expenses; and
• Sources of affordable loans and credit, including a map of the approximately 150 nonprofit credit union branches where New Mexicans can access low-cost loans and affordable options to refinance existing debt and access affordable emergency credit, often without requiring a credit check or credit score. An increasing number of banks also offer low-cost credit to their customers.

The Resource Guide can be accessed at: https://www.prosperityworks.net/financial-resource-guide.html