Lawmakers consider bills aimed to payday loan industry

SANTA FE, N.M. (AP) — Bills aimed at regulating payday and title loan lenders in New Mexico are up for a hearing before a panel of House lawmakers. One of the measures would cap rates at 36 percent on small loans issued by lenders that are not federally insured, while another calls for a much higher interest rate. Short-term, high-interest lending practices have been a target of consumer advocates for decades in New Mexico, but efforts to rein in the business fall flat year after year. The industry says it's one of the few options for low-income New Mexicans who find themselves in a bind and are ineligible for traditional credit. But consumer advocates describe the lending practices as unscrupulous. Some 30 states already have banned auto title loans, and a dozen have capped rates at 36 percent or less.