City of Albuquerque
Share to Facebook Share to Twitter Bookmark and Share
File #: R-14-102   
Type: Resolution Status: Enacted
File created: 9/3/2014 In control: City Council
Final action: 10/6/2014
Enactment date: 10/23/2014 Enactment #: R-2014-081
Title: Supporting Interest And Fee Caps On Non-Bank Lending Institutions In New Mexico (Gibson, Benton, Gardu?o, Pe?a)
Sponsors: Isaac Benton, Klarissa J. Peña
Attachments: 1. R-102, 2. R-102final, 3. R-102Enacted
Date Action ByActionResultAction Details
10/23/2014 City Clerk Published  Action details
10/22/2014 Mayor Signed by the Mayor  Action details
10/14/2014 City Council Sent to Mayor for Signature  Action details
10/6/2014 City Council PassedPass Action details
9/15/2014 City Council Accepted Without Recommendation  Action details
9/8/2014 Finance & Government Operations Committee Sent to Council Without RecommendationPass Action details
9/3/2014 City Council Introduced and Referred  Action details
9/3/2014 President Referred  Action details

COUNCIL BILL NO. R-14-102 ENACTMENT NO. ________________________

SPONSORED BY: Diane Gibson, Isaac Benton, Rey Gardu?o, Klarissa Pe?a

Supporting Interest And Fee Caps On Non-Bank Lending Institutions In New Mexico (Gibson, Benton, Gardu?o, Pe?a)
WHEREAS, Albuquerque has about 140 licensed small loan companies that routinely charge 300% to 600% interest on loans lasting five months to unlimited duration; and
WHEREAS, Albuquerque small loan companies issued about 78,000 loans with interest rates over 175% during 2012 according to New Mexico's Department of Regulation and Licensing statistics; and
WHEREAS, Consumer Finance Protection Bureau, Center for Responsible Lending and Pew Charitable Trust studies have all shown high interest lending traps borrowers and their families in crippling cycles of debt; and
WHEREAS, studies conducted by the Consumer Financial Protection Bureau, the Pew Charitable Trust and others show high cost loans take money out of consumer's pockets damaging local businesses and reducing jobs in local economies; and
WHEREAS, the City of Albuquerque desires that consumers utilize credit that does not result in permanent financial damage to borrowers, their families and the community, and wishes to accomplish this in a manner that simplifies regulation and allows businesses that benefit our community to have the maximum flexibility to conduct business as they choose; and
WHEREAS, the victims of high interest loans are primarily the poor, single moms, and veterans and these borrowers are seldom adequately vetted for ability to repay; and
WHEREAS, the US Department of Defense has determined that high cost lending puts dangerous stresses on the families of active military personnel and harms military readiness, and is in the process of e...

Click here for full text