SANTA FE, N.M. (AP) — The legislature hit a stalemate over an initiative to rein in interest rates on small, short-term loans.
Advocates for lowering maximum interest rates on storefront loans say current loan rates exploit the poor and can send borrowers into a spiral of debt.
The state Senate rejected amendments Thursday from the House to a bill that initially capped interest rates at 36% annually. House-approved revisions would allow a maximum annual percentage rate of 99% for loans of $1,100 or less. Current interest rates are capped at 175% annual interest.