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New Mexico Senate passes bill to reduce cap on small-loan interest rates
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Legislation aimed to rein in what critics call predatory lending passed the state Senate after a tense two-hour debate Monday that sparked accusations of untruths and assertions the bill’s sponsors are oblivious to the tough realities confronted by people who live paycheck to paycheck. Opponents contended Senate Bill 66, which would cut the maximum interest rate on small loans to 36 percent from 175 percent, would do more harm than good for struggling New Mexicans by causing high-risk lenders to shut down. The measure passed on a 25-14 vote and will be considered next by the state House of Representatives. Expect plenty of dissension and disagreement if Tuesday’s Senate floor session is any indication of what lies ahead. One of the bill’s sponsors, Sen. William Soules, D-Las Cruces, said about a third of the people who called him about the legislation were angry it would cap the interest at so high a rate.