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It passed the House on a 51-18 vote and cleared the Senate Tuesday night via a 19-8 vote.
Governor Michelle Lujan Grisham signaled her support for the measure shortly after Wednesdayâs vote in the House to pass the billâs changes. The Democratic governor has until March 9 to sign or veto the measure.
âThis legislation addresses an important issue that affects the most vulnerable New Mexicans in rural and urban communities, which is why I have included such action in my legislative priorities for 2021,â said Lujan Grisham. âI am pleased to see the Legislature reach consensus on the measure and applaud the members for voting to protect New Mexico consumers.â
New Mexico has a long history of regulating the lending industry.
A previous 36% cap on loan interest rates was abolished by the Legislature in the 1980s amid high inflation, according to research by Santa Fe-based Think New Mexico, which has is pushing for the lower rate cap to be reinstated.
After years of Roundhouse debate, lawmakers passed a 2017 bill that established the current 175% interest rate cap on small loans and banned so-called payday loans with terms of less than 120 days.
But some lawmakers and advocacy groups have insisted the 175% cap is too high and frequently leaves New Mexicans stuck in âdebt traps.â


