Reports from some trade associations that represent non-depository lenders, not pawn industry related, discuss bills filed in New Mexico that call for a 36% APR cap. In fact, there are 3 bills under consideration by the Legislature there that apply a 36% APR to loans made under the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959.
Contrary to some conversations on various pawnbroker social media sites and postings on LinkedIn, these bills are not applicable to banks, savings and loan associations, credit unions, “nor to any bona fide pawnbroking business transacted under a pawnbroker’s license.”
As we stated last week, the NPA’s Team GRC receives daily reports from a service that tracks all state legislatures. We continue to watch for any bills or regulations that would affect the pawn industry, and the New Mexico legislation does not, this time. But all pawnbrokers and state associations should always remain vigilant and aware of what the next piece of legislation may contain that could alter the course of your business with the stroke of a pen.
