Regulations on Payday Loans in New Mexico Not Planned
By J.J. CameronPayday Loan Writer
If it were up to New Mexico Governor Bill Richardson, his state would have regulations on plans on cheap payday loans of all kinds.
But that's why state goverments have a system of checks and balances.
In late June, the Regulation and Licensing Department ended the public comment period for proposed regulations designed to limit fees, end interest and give payback options to in-person and online, faxless payday loan consumers. After the public comment period ended, the regulations were revised and set to take effect on Aug. 31, but now sit idle due to a preliminary injunction granted by a state district judge.
The injunction, which bars the regulations from being enforced until further litigation, was granted on Aug. 30 in response to two separate lawsuits filed by Check ’n Go and Fast Bucks, national payday advance loan companies with stores in New Mexico.
Regulation and Licensing Superintendent Edward J. Lopez, Jr. says the department will respect the injunction.
"We strongly believe the Legislature, in the Small Loans Act, gave the Regulation and Licensing Department the authority to draft these regulations and implement them," he says.
Lopez says they will appeal the decision as soon as possible. For now, it appears as though individuals with a desire for fast cash loans can have that need met in New Mexico.
