Ensure affordable credit in NM

AN IMPORTANT debate is taking place in the state Legislature about how to provide safe, affordable credit to New Mexicans. We support interest rate caps that are properly and carefully crafted to ensure that a well-intentioned rate cap doesn’t have the unintended consequence of restricting access to responsible loans for borrowers who may lack a credit history or a “prime” FICO score – but who are still creditworthy.

Many New Mexicans face challenges in accessing credit through traditional financial institutions, including banks and credit unions. This can result in dire consequences if there are no responsible alternatives available to them. Few Americans have rainy day funds big enough to cover unexpected bills, paycheck shortfalls or unplanned work absences. When faced with a financial emergency, New Mexicans need access to lending products that meet their needs in a responsible way. These loans can empower individuals and families, drive financial mobility and increase financial security. This is good for local communities and for the state economy.

Members of the New Mexico Consumer Credit Association provide responsible lending products, underwritten for our customers’ ability to afford their loan payments, report to credit bureaus to help our customers build their credit, and our loans have fixed, equal monthly payments — no balloon payments or increases to surprise consumers. Our loans give individuals and families with imperfect credit options for improving their financial lives, meeting financial emergencies and consolidating debts.

We believe it is possible to pass meaningful reform that upholds access to responsible loan products while still protecting consumers from predatory practices. We look forward to working with legislators and stakeholders to ensure financial mobility for the most underserved New Mexicans.

GENEVE VILLACRES N.M. Consumer Credit Association, Albuquerque