46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TRADE PRACTICES; ENACTING A NEW SECTION OF THE UNFAIR PRACTICES ACT TO CLARIFY MISLEADING EXTENSION OF CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Unfair Practices Act is enacted to read:

"[NEW MATERIAL] PRE-APPROVED LOAN CHECKS--MISLEADING EXTENSION OF CREDIT.--

A. Extending pre-approved credit by means of a pre-approved loan check without clearly and conspicuously stating in writing in a prominent location on the face of the pre-approved loan check that such is an extension of credit and is a loan that constitutes an extension of credit is an unfair and deceptive trade practice. A pre-approved loan check that clearly and conspicuously states the disclosures required pursuant to the federal Truth in Lending Act, 15 U.S.C 1601, and regulation Z, 12 C.F.R. 226.1, including full disclosure and an explanation of interest due and the other terms for the extension of credit, accompanying an extension of pre-approved credit is not a misleading extension of credit.

B. As used in this section, a clear and conspicuous disclosure includes printing the word "loan" in a prominent and conspicuous manner as compared with other words, statements, designs or graphic material in contrasting color letters on the front of the pre-approved loan check."