© 2024 KRWG
News that Matters.
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Storefront loan proposal hits stalemate in state legislature

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.