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New Mexico Payday Loans, A Viable Alternative For Cash Fast

New Mexico State Map
New Mexico State Map

If you’re a citizen in the state of New Mexico and you’re considering a payday loan, the good news is at securing New Mexico payday loans may be easier than what you have imagined. The requirements for getting such a loan are relatively few and upon approval cash can be tendered to you usually within 24 48 HRS. This is an awesome service for responsible borrowers in need of additional cash for whatever personal reasons they may have. In light of some recent developments this is something that you could do with a greater sense of insurance and comfort.

On April 6, 2011 the governor of New Mexico signed into law house bill 337, which relates specifically and financial institutions instead of New Mexico. This bill amends the New Mexico Small Loan Act of 1955; this new law requires licensees to file annual reports with the state of New Mexico in a timely manner; provides penalties for lenders should they violate the laws of the state governing their activities. Bill 337 also requires the Financial Institutions Division of the Regulation and Licensing Department to prepare an annual report to give greater transparency to the process.

Bernadette M. Sanchez sponsored senate bill 299 which amends the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955. These new amendments requires that consumer loans of $2,500 or less be made under the New Mexico Small Loan Act of 1955; in addition it requires a database and amends reporting requirements for payday loans. This was done in an effort to assure consumers that the payday lending facility that they are dealing with is fully compliant with all of the laws governing their industry.

New Mexico State Flag
New Mexico State Flag
Senate Bill 305 introduced by Peter Wirth amends the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955. This new bill adds and amends certain definitions to the language of the original law; it imposes a cap on interest rates and fees for certain loans to consumers. Additionally it amends payday loan disclosure requirements; requires a database for certain loans. With the establishment of a database for certain loans, it provides the state with the ability to monitor the activities of certain aspects of the industry and assure the borrowing consumer that the lending store that they are doing business with is in compliance with the rules set forth by the state of New Mexico.

Because payday loans are such an attractive solution for people experiencing a financial emergency or the temporary cash flow blockage, the legislature of the state is working hard to try to assure its constituency that the industry that they’re dealing with is sound, compliant and above board in their interaction with consumers. When you take into consideration that these loans can be very risky to undisciplined borrowers do not have a firm grasp or understanding of their own cash flow or lack thereof, the state is attempting to build in safety parameters for these individuals. By and large the industry as a good one and provides an invaluable service to the community.

It would appear that in some circumstances when a person takes out a pay day loan that their fees due to them to be a significant, for individuals that are not very get a cash management or budgeting what started out as a nominal fee might swell to something far greater than what they imagined. This has been complaint in the media share of late but the reporting has been one side. A fortunate in our society the press makes its bread and butter on creating a victim in crafting a crime. In reality the laws of the state do a very thorough job in protecting consumers in the arena of New Mexico payday loans. Borrowers are fully aware of charges and fees when they initially apply for and are approved for the loan. All of this information is provided to the borrower in writing and then must read and sign off on it indicating that they are fully aware of what the agreement is. Short borrowers that take out payday loans and return payment of these loans in a timely manner never have the issue these rates or charges from payday lenders, complaints always tend to surface with people that are negligent in their payments or are they just outright default.

New Mexico payday loans
New Mexico payday loans
This is unfair to the responsible consumer who occasionally does need a helping hand with additional cash, because the payday loan facility is perfect for what their needs are. Responsible individuals do not have the time to go through the process of securing a traditional loan from a banking institution. Often time the loan is for such a short period of time that the borrower deems it totally unnecessary to go to a banking institution to secure a personal loan, and for these individuals a payday loan office perfect sense in a perfect fit for them. They appreciate the ease and convenience of the process because it fits with their hectic lifestyle and it can be a 24 to 48 hour span of time between the start of an application and the time that they actually receive the funds that they have apply for. I am not trying to whitewash the industry and to make it appear that there are no discrepancies at all, I am fervently making the point that oftentimes horror stories that the press reports on about this industry come from situations in which there was any responsible borrower knots doing the proper thing with their funds, and subsequently incur a larger fees and interest because of this.

I believe that it is unfair to penalize an industry or the irresponsible behavior of a few neglectful borrowers who have defaulted on their loan obligations and incurred all of the fees and penalties that go with such a situation. This is the same thing happens not only with consumers and banking institutions that these days with banks themselves. So before we shoot ourselves in the foot with excessive legislation we need to take a long hard and fair look at the industry as a whole, and not at just the tragic parts.