NM lawmakers target loan lending rates
Legislators say payday loans with high interest rates are exploiting the poor; legislation has been introduced in this session to cap rates
SANTA FE >> The FastBucks store on Cerrillos Road in Santa Fe has blown-up imitations of $100 bills covering its drab walls and an interest rate that sounds tantalizing to customers in need of cash.
Asked about a $500 installment loan, the woman behind the counter said it would carry a rate of 3.99 percent. Further questioning brought out an important detail that she had omitted. She said the rate she quoted is 3.99 percent per day.
In a followup interview, the woman said she had incorrectly explained the rate. She said FastBucks charges $1.45 in daily interest for every $100 borrowed. Interest on a $500 loan would be $7.25 day, or about $217 a month.
Read more here: http://www.demingheadlight.com/deming-news/ci_27440018/nm-lawmakers-target-loan-lending-rates