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Predatory Lending Bill and Holidays


MANY PEOPLE LOOKING TO FATTEN THEIR WALLETS AFTER HOLIDAY SPENDING ARE TURNING TO STOREFRONT LENDING COMPANIES. ACTION 7 NEWS REPORTER LAURA THOREN SPOKE TO A UNIVERSITY OF NEW MEXICO PROFESSOR ABOUT WHY THOSE LOANS…COULD GET YOU IN MORE TROUBLE. AFTER BLACK FRIDAY SPENDING – HOLIDAY SHOPPING – AND A FEW LAST MINUTE CHRISTMAS GIFTS – MANY NEW MEXICANS ARE FEELING PAIN IN THEIR POCKETS – AS WE ENTER THE NEW YEAR. There isn’t any doubt this time of year is more expensive-more expensive for all of us. IF YOU’RE LOOKING FOR “FAST CASH” UNIVERSITY OF NEW MEXICO PROFESSOR NATHALIE MARTIN SAYS — YOU MAY NOT WANT TO GO TO YOUR LOCAL LENDING STOREFRONT WHERE A 500 DOLLAR LOAN AT 500% CAN END UP COSTING YOU OVER 2500 DOLLARS. when are the rates are this high, it does trap people Now if you’re really strapped for cash, Martin says a better option is to apply for a credit card. Even if you don’t think you have the credit for one – you might surprise yourself – and be accepted for a card with a lower interest rate. Another option is to head to a credit union. //STITCH TO// This is a place where people who don’t have perfect credit can go to see if they can get a short term loan. NEW MEXICO’S LEGACY OF LOANS COULD BE CHANGING – DRAMATICALLY – IN COMING MONTHS. LAWMAKERS IN SANTA FE ARE PUSHING A BILL TO CAP INTEREST RATES AT JUST 36% OR LESS. LAURA THOREN KOAT ACTION 7 NEWS. EARLIER THIS YEAR, THE STATE SUPREME COURT RULED THAT LOANS WITH INTEREST RATES OVER A THOUSAND PERCENT WERE NOT ENFORCEABLE. HOWEVER, MARTIN SAYS SOME LENDING COMPANIES ARE EXPERTS

Stephen Childs

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