New Mexico Payday Loan Laws Details
The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding New Mexico payday loan laws contact the New Mexico Financial Institutions Division.
Payday loans are legal in New Mexico (see New Mexico Payday Loans or New Mexico Installment Loans to compare fees and requirements for individual lenders).
| Feature | Specification |
|---|---|
| Amount (max) | <25% of gross monthly income |
| Rates or Fees (max) | $15.50 per $100; $.50 verification fee per $100 |
| Term Limitations | 14 to 35 days, can be shorter by written agreement |
Rollovers are not permitted in New Mexico. The cooling period between loans is 10 days. New Mexico borrowers are eligible for a repayment plan with equal installments over a 130 day period.
For example, in New Mexico the rates and fees on a 14 day, $100 loan are:
| Terms | Amount |
|---|---|
| Loan Amount | $100 |
| Fees | $16 |
| APR | 416% |
New Mexico also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.
| Feature | Specification |
|---|---|
| Collection Fees | $15 NSF fee one time per loan |
| Criminal Action | Prohibited |
Upon the execution of a new payday loan, the licensee may impose an administrative fee of not more than $15.50 per $100 of principal, which fee is fully earned and nonrefundable at the time a payday loan agreement is executed and payable in full at the end of the term of the payday loan or upon prepayment of the payday loan unless a payday loan is rescinded pursuant to Subsection C of §58-15-32 NMSA 1978. Upon the execution of a new payday loan agreement, the licensee may impose an additional administrative fee of not more than 50 cents per executed new payday loan agreement as necessary to cover the cost to the licensee of verification pursuant to §58-15-37 NMSA 1978, which fee is fully earned and nonrefundable at the time a payday loan agreement is executed and payable in full at the end of the term of the payday loan or upon prepayment of the payday loan unless a payday loan is rescinded pursuant to Subsection C of §58-15-32 NMSA 1978.