New Mexico Court Blocks Payday Advance Restrictions
By J.J. CameronPayday Loan Writer
This isn't how Governor Bill Richardson envisioned things. He has hoped to rid his state of payday loans - or at least restrict their rates of interest - for months now.
However, a judge has blocked such implementation, staving off regulations on a savings account payday loan industry that critics say robs from the poor.
State officials plan to appeal. Gov. Richardson and Attorney General Patricia Madrid say they will ask the state Court of Appeals to lift the preliminary injunction granted by a district court in Albuquerque.
Meanwhile, naturally, providers of instant payday loans have been challenging the regulations, which cap fees imposed by lenders and limit the number of cash advance renewals and amount of outstanding payday loans a person has in the state.
The fight appears to have only just begun. We'll keep you apprised of the cash loan situation in New Mexico as it develops.
