Payday Loan New Mexico: Some New Regulations to Consider

If you are looking for a payday loan New Mexico, then you need to be aware of new state regulations that recently went into effect. Under a new law that went into effect on November 1, 2007, the state has put a cap on fees, restricts total loans by a consumer, and prohibits immediate loan rollovers in which a consumer takes out a new loan to pay off the previous loan.

Now, a borrower that is unable to pay back a loan is automatically offered a payment plan over a 130 day period and is not charged fees or extra interest. Under the new law, once a loan is paid back, people must wait a minimum of ten days before getting another loan. The law also limits the loan terms to run from fourteen to thirty five days, and the fees are limited to $15.50 per each $100 borrowed with a maximum fifty cent administration fee. Borrowers are now also only able to borrow up to twenty five percent of their gross monthly income.