WASHINGTON, January 29, 2022 /PRNewswire/ — Today (Saturday, January 29, 2022) the New Mexico The House Consumers and Public Affairs Committee will consider HB 132, which caps interest rates at 36% for consumer loans. The following statement can be attributed to Danielle Fagré ArloweSenior Vice President of State Government Affairs for the American Financial Services Association:
“HB 132 is not only a bad bill for the citizens of New Mexico; it is a cruel bill. At a time when thousands of New Mexican households have little or no savings, HB 132 would deny those with poor credit scores or no credit scores access to consumer credit products to meet their real financial needs. In other states where policymakers backed similar interest rate cap proposals, consumers found themselves with less access to credit, increased bad checks, and fell further behind in covering debt. expenses.
“Traditional installment loans are safe, reliable and transparent to consumers. Imposing additional restrictions on New Mexico installment lenders will not affect credit application. While borrowers among from New Mexico the elite may find other sources of credit or afford larger loans, low-income people will likely be left in credit deserts or forced to turn to unregulated or illegal options.
“Rather than eliminating what for many New Mexicans may be their only consumer credit option, policymakers should take the time to understand their constituents’ needs and ensure they have access. to safe and affordable credit options.We are ready to work with the New Mexico the legislature and the governor’s office to expand, not hinder, consumer access to safe and reliable credit products. »
Situated at washington d.c., the American Financial Services Association (AFSA) is the national trade association for consumer credit, committed to protecting access to credit and consumer choice. Its 450 members include traditional installment lenders, vehicle finance companies, consumer and commercial finance companies, mortgage lenders and managers, payment card issuers, industrial banks and service providers. industry. For more information, visitwww.afsaonline.org.
SOURCE American Financial Services Association