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| SPONSOR: | Watchman | DATE TYPED: | 02/28/01 | HB | 814 | ||
| SHORT TITLE: | Interest Rates for Motor Vehicle Loan | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| NFI | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HB 280 also limits interest rates on auto loans
SOURCES OF INFORMATION
LFC Files
No Response
The Financial Institutions Division of the Regulation and Licensing Department (RLD) analysis had not been received prior to the writing of this report.
SUMMARY
Synopsis of Bill
This bill adds a new section (56-8-11.1 NMSA 1978) limiting the maximum interest rate on the secured sale of a motor vehicle. The maximum rates are as follows:
Loan Amt. Max. Rate
$1- $499 17%
$500 - $2,499 15%
$2,500 - $4,999 13%
$5,000 and up 10%
This section does not apply to business or commercial vehicles over 10,000 gross weight.
The bill provides for criminal penalties (misdemeanor) and fines for violations of these provisions.
FISCAL IMPLICATIONS
Unknown.
ADMINISTRATIVE IMPLICATIONS
The Attorney General's Office would likely experience some administrative impact if consumers are charges usurious rates and enforcement action is necessary.
JBE/ar