New Mexico Payday Loan Laws

When you are in need of emergency loans, then payday loans would certainly help you in that regard. There are certain rules and regulations for people who are borrowing money as payday loans in New Mexico, and the rules are extremely stringent. Specified loan companies, as well as individuals have to abide by the particular rules before they even think of lending money.
• Maximum APR – 500 percent
• Maximum Finance Fees – No limit
• Maximum Financing Interest – No Limit
• Maximum Quantity of Loans at One Time – One
• Maximum Payday Loan – No limit
• Loan Term Limit – 5 Days
• Loan Term Maximum – 30 Days
• Total Number of Extensions: 5 times
• Loan Default Collections Actions Permitted: Non-criminal (exception for NSF checks)
The features given above are just the basic features that should accompany any payday loan taken from New Mexico. There are also a lot of loopholes in the legislation and regulations in New Mexico, and it has been exploited by the lenders. It is a common practice for them to issue a lot of payday loans, and start paying off one after the other, ensuring that the borrowers would always be in debt and unable to surface from this matter.
The lender is well within the legislation of the law to do so, but it actually ensures that the government would be cheated out of the money that they would be getting in taxes. In a particular region in New Mexico, you would find that the finances have been suffering badly, and most of it can be attributed to such misgivings in the payday loans. For the people that are in extreme need of money, they are not able to get payday loans you to such people and their endless greed.
In most cases, you would find that the lenders actually take a rate that is well beyond the specified stipulated rate of interest to be taken on a particular amount. This results in added pressure to the borrower, and they would have to work extremely hard to repay the debt. In most cases, bankruptcy is the ultimate result, and it is the result of such malpractice by the lenders. The state of New Mexico needs to be more strict and stringent with the rules and regulations pertaining to the payday loans. In this manner they would be able to stop such injustice.

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