2022 Special Edition
Effort to cap interest rates contends with lobbying muscle
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Once a person has taken out a loan from a storefront lender in New Mexico, interest rates up to 175% can quickly spiral out of control. Because they target lower-income people who don’t have bank accounts, these storefront outfits are often referred to as “predatory lenders.” A 2020 Think New Mexico report describes New Mexico as “saturated”: In New Mexico there is a small loan store for every 3,819 residents, according to the report. By comparison, there is one McDonald’s restaurant for every 23,298 New Mexicans. As lawmakers attempt to cap interest rates at 36% this session, they might keep in mind a new New Mexico Ethics Watch report that took a look at the industry’s lobbying efforts. It’s a report that quantifies some of the spending but also gets across just how much we can’t know about the influence peddling that goes on at the Roundhouse, bringing up an issue New Mexico In Depth has reported on repeatedly over the years: lobbying disclosure.