New Mexico in Focus; 1003; Payday and Car Title Loan Companies

SRT Captions File Generated by MXFplus MS. NELSON'S APPAREL WAS

WYOMING. MAJOR FUNDING FOR INFOCUS IS EDUCATION ENVIRONMENT, AND OF NEW MEXICO. >> THE GOVERNOR AND ATTORNEY GENERAL HOPE TO HELP BREAK THE TITLE LOAN INDUSTRIES. PROBABLE LEGAL CHALLENGE? BORROWING AWAY THEIR FUTURE. >> MANY NEW MEXICANS LIVE

SUCH THING AS AN EMERGENCY FUND. TITLE LOAN STORE. POVERTY THAT CAN TAKE YEARS TO THE NUMBERS. THE GROWTH OF THE PAYDAY AND CAR THEM IN OUR STATE. STORE FOR EVERY 7,000 PEOPLE. CONCENTRATED IN LOW-INCOME EVERY 500 RESIDENTS. IN MOST PAYDAY LOAN CUSTOMERS LOANS A YEAR. THE AVERAGE INTEREST RATE ON TITLE LOAN COMPANIES AND 560% FOR THE PAYDAY LOAN COMPANIES.

ACCORDING TO THE CENTER FOR SPENDING MORE THAN $800 ON A LOAN OF $325. >> ON THE SHOW TODAY WE'LL HEAR HARD WORK. LOANS DO BUSINESS. SERVED ON THE GOVERNOR'S PAYDAY SANCHEZ, BOTH OF WHOM SPONSORED OUTRAGEOUS, I THINK THE WORD IS USURY, AND THERE'S A BIBLICAL CISCO? >> WELL, WE TOOK AWAY OUR USURY LAWS IN THE 1980S, WHEN RATES WERE SO HIGH, AND THERE IS THIS BEAR WHATEVER IT CAN BEAR AND

THAT THERE IS NO MORALITY. AND IN THE LEGISLATURE, THE DEMOCRATS AND THE CHRISTIAN BETWEEN THIS AND THE MAFIA IS YOU DON'T PAY THE LOAN. >> THEY WILL TAKE YOUR CAR -- THERE'S BEEN A LONG IS THERE SOME BENDING NOW, SOME >> I FORESEE THAT AFTER THIS LEGISLATIVE SESSION THAT THE COMMITTEE, THROUGH RURAL HAVE A PRESENTATION IN JULY. AND HE SAID, YOU KNOW, THAT'S WORKING ON THIS LEGISLATION, NEED TO DO SOMETHING, AND I

THINK THE SOMETHING IS THE QUESTION. >> SOMETHING IS ALREADY WRITE SOME NEW REGULATIONS. WOULD LIMIT THE FEES ON A PAYDAY TO $15.50 FOR EVERY HUNDRED DOLLARS BORROWED, ALSO LIMIT THE NUMBER OF TIMES A LOAN COULD BE HIGH INTEREST RATES, IT DOES THIS? >> IT'S NOT TRUE THAT IT DOES IMPOSED IS THE $15.50 PER HUNDRED DOLLARS BORROWED. REGULATIONS, AS THEY HAVE BEEN PROPOSED PROVIDE, THIS WORKS OUT TO AN ANNUAL PERCENTAGE RATE OF UNDER 100%, ABOUT 97%, AND IF THE ADDITIONAL TIME IS USED FOR GET THE ANNUAL PERCENTAGE RATE

DOWN TO THE 70% RANGE, AND IF THE LOANS ARE BASED ON THE 35-DAY TERM, RATHER THAN THE 14-DAY TERM, WHICH SOME OF THESE THEN THE INTEREST RATE CAN GET CLOSE TO WHAT ATTORNEY GENERAL PARROT THE PAWNBROKER ACT, WHICH PROVIDES FOR A 54% RATE. FIRST WORKED WITH SENATOR MEXICO BACK IN THE 1999 SHE'S CONTINUOUSLY WORKED WITH HAVEN'T BEEN ABLE TO SUCCEED AT REGULATIONS UNDER THE UNFAIR PRACTICES ACT. LICENSING DEPARTMENT, HAS NOW

WE'RE HOPING THAT IF THESE WILL AT LEAST HAVE SOME THE OUTSIDE OF YOUR SHOW AND AND AVOID THIS CYCLE OF DEBT >> UP UNTIL THIS POINT -- STILL POWER OVER THESE COMPANIES OTHER STATE TASK FORCE TO COME UP WITH SOME OF THEM BAN THESE IN THESE NEW REGULATIONS? >> WELL, YOU'RE RIGHT, KATE. WORKED ON, AND WE SPENT ABOUT HOURS IN MEDIATION WITH EIGHT CONSUMER REPRESENTATIVES AND EIGHT INDUSTRY REPRESENTATIVES.

YOU WANT TO CALL IT A FEE, AND WE WERE WORKING ON BEST DISCLOSURES AND THE LIKE. BEING ADDRESSED TO -- REALLY TO A GREATER EXTENT IN THE ATTORNEY GENERAL PROPOSED AND POLITICS IS THE ART OF STRAIGHT SESSIONS OF REALLY NO SUCCESS, THAT WE NEEDED TO TRY TO UNDERSTAND WHERE THE MIDDLE POSITION MIGHT BE. AND I THINK THE GOVERNOR DIDN'T CREDIT FOR BORROWERS WHO USE PAYDAY LOANS, BUT HE WAS DARN

INTEREST RATES AND DO SOME OF SO, YOU KNOW, WHAT I WOULD SAY IS DURING THE COURSE OF THE TASK THAT THEY WERE WILLING TO MOVE, THE CAP ON FEES THAT THEY WERE WILLING TO LIVE WITH. THEY ALSO RATHER QUICKLY AGREED TO A REPAYMENT PLAN THAT WOULD BASICALLY PROVIDE THE BORROWER TIME WITHOUT AN ADDITIONAL FEE LEARNED DURING THE COURSE OF THE TASK FORCE WAS THAT BOTH SIDES WERE WILLING TO MOVE AND THAT WE COULD REDUCE -- WE COULD HAVE

LOWER CAPS, LONGER REPAYMENT DISCLOSURE, AND I THINK YOU'RE SEEING THOSE THINGS COME TO FORTITUDE OF THE ATTORNEY GENERAL, AS WELL AS OUR >> THERE ARE STILL SOME THE EARLIEST THEY WOULD TAKE THAT VERY INDUSTRY THAT WORKED >> WE MAY OR WE MAY NOT. THAT THAN I. MY WORK ENDED IN JANUARY. WHAT DO YOU THINK, STUART? >> WE'VE BEEN TOLD BY THE DIVISION TO PREPARE APPROPRIATE >> AND IT'S AFTER YOU WITHSTAND >> YES, I THINK THAT'S THE

>> WHY WOULDN'T THEY INCLUDE IT >> THEY DECIDED THEY WANTED TO INTRODUCTION INDICATED, TOO, THE THINK, FOUR PAYDAY LOAN PROLIFERATING ALL OVER. >> THAT'S A NATIONAL ISSUE. FOR THE INDUSTRY HERE. THIS PROGRAM, BUT NONE AGREED TO ARE PROVIDING A LEGITIMATE MICROLOANS ARE ALMOST IMPOSSIBLE TIME, THE INTEREST THEY GET FROM IT WILL BARELY COVER THEIR HIGH.

BUSINESS? >> BECAUSE THE PEOPLE THEY LEND THEY DON'T GIVE CONSUMERS THE JUST GIVE CONSUMERS THE OPTION THE FACT THAT IT'S NOT ILLEGAL TREATED. WAY, AND THIS IS WHAT I DO IN AND WHEN THESE LOANS ARE ROLLED THE INDIVIDUAL CONSUMER, IT'S NEW MEXICO, AND IT'S BAD FOR OUR >> OKAY, ANOTHER ARGUMENT, THE IF THEY CAN'T MAKE THE KIND OF

>> I DON'T SAY THAT 100% I WOULD RATHER THAT PEOPLE LOOK DIFFERENT JOBS. THEY JUST LOOK HARD ENOUGH. I DON'T THINK YOU NEED TO HAVE JOB, EITHER. >> RESPECTFULLY, SENATOR, THERE IS CERTAINLY AN ARGUMENT TO BE MADE, AND THERE'S A SUBSTANTIAL BODY OF FACTS THAT THERE ARE A MEXICO WHO VERY MUCH WANT AND MIDDLE OF THE ROAD ON THIS, BUT I THINK WE HAVE TO BE CAREFUL POSITION ON THIS. >> AND I DON'T.

IT'S A CRIME WHEN YOU'RE CHARGING 521% TO INDIVIDUALS THAT MAKE -- THE AVERAGE PERSON THAT TAKES OUT THIS KIND OF LOAN MAKES ABOUT $24,000 A YEAR. >> LET ME ASK YOU A QUESTION OPPOSED A PAYDAY REGULATION BILL LUNDSTROM OF GALLUP HAD NOTHING. >> THE REGULATIONS -- AND I DISAGREE WITH STUART, BECAUSE I CAME UP WITH A DIFFERENT NUMBER DAYS, AND I THINK -- THEN IF PLANS, IT'S 97%.

ANYBODY ELSE. ABOUT THE -- I THINK IT'S A I THINK IT'S GOING TO TELL US WE NEED, DOCUMENTS AND THAT, DOCUMENTATION FOR THE LEGISLATURE OF WHAT'S REALLY AND CORRECT EVEN THIS >> WE'LL SEE WHAT HAPPENS IN JOINING US TODAY. >> FOR MANY FOLKS, THE PAYDAY GETS TIGHT. SO HOW CAN WE HELP PEOPLE BREAK THAT QUESTION IS ANGELICA FOR THE CONSUMER PROTECTION

CITIZENS LAW CENTER. ACORN. AND EMILY BIHN, A FORMER PAYDAY WHETHER YOU THINK THESE NEW >> I DON'T THINK THAT THEY'RE BUT I DON'T THINK THEY'RE THE STATE. >> ANGELICA? >> THEY'RE A GOOD START IN THAT THEY ACTUALLY ARE GOING TO THEY ARE GOING TO PROVIDE CONSUMERS AN OPPORTUNITY TO LOANS. >> CARTER? >> I THINK IT IS A GOOD START. AND WE WERE VERY SUPPORTIVE OF

LOANS ROLL OVER AT LEAST FIVE IT'S REALLY THE ROLLOVER THAT ABOUT 130-DAY PERIOD. STEP IN THE RIGHT DIRECTION. >> EMILY, DO YOU THINK THESE >> I THINK SO. POCKET THAT YOU'RE PAYING FOR EVERYONE SAYS, IT'S A GOOD >> YOU WERE STARVING STUDENT, LOANS OVER THE COURSE OF TWO >> HORRIBLY, ACTUALLY. INTO ANOTHER AND ANOTHER AND ANOTHER, AND THERE IS A PERIOD FOR $200 THAT I HAD TAKEN OUT

INITIALLY. CHARGES. >> WHICH COULD HAVE GONE A LONG >> OH, DEFINITELY. >> YOU KNOW, YOU'RE GOING TO EVERY PENNY YOU EARN AND EVERY WHAT KIND OF OVERSIGHT DID YOU >> YOU HAVE TO WRITE THEM A STATEMENT, BASICALLY PROVING AND THAT YOU DON'T HAVE A THAT YOU HAVE A JOB, AND THAT'S ABOUT IT. >> AND HOW MUCH DID THEY LIKE? >> WELL, BASICALLY, THEY ASSURE OVER, AND YOU CAN TAKE OUT ANY SORT OF PAYMENT PROGRAMS

THEY MAY HAVE WHEN YOU DO GET YOU'RE IN A CYCLE THAT'S NOT GOING TO END. ANYTHING LIKE THAT. >> I IMAGINE THERE WERE SOME >> YES. >> DAVID, YOUR CREDIT UNION COMPANIES AND EDUCATIONAL THAT. >> WE DON'T EXCLUSIVELY WORK MILITARY CREDIT UNION, WE SERVE THE ACTIVE-DUTY PEOPLE IN THE MILITARY, WE HAVE A LOT OF OTHER IT'S INTERESTING, YOU MENTIONED YOU CAN'T GO IN AND BORROW $300 FROM A BANK. WELL, YOU CAN COME IN AND TYPES OF LOANS TO YOUNG AIRMEN

IN THE MILITARY, WE DO -- WE WORK WITH THE FAMILY SUPPORT WE GIVE THEM A SHEET, AND WE GO THROUGH THE SHEET OF PAPER ON HOW TO AVOID PAYDAY LENDERS. SERGEANT AND EVERYONE IN THE OTHER SOURCES. >> THE PAYDAY LENDER WOULD SAY, "EASY FOR YOU, YOU'RE A SAME MODEL? >> WELL, AND I'LL GRANT THEM THAT. THE FEDERAL GOVERNMENT OF 18%. TAXES, AND MAYBE THEY CAN LIVE WITH 36% OR 48%. THAT ARGUMENT THAT THEY HAVE TO >> IT'S WORTH NOTING, TOO, THAT

HIGH NUMBER OF PAYDAY AND CAR TITLE LOAN COMPANIES AROUND THE OTHER THINGS WE CAN DO TO BREAK >> I THINK ONE OF THE FIRST IT'S THE LOWEST IT'S BEEN UNFORTUNATELY -- ACTUALLY TODAY, THE FEDERAL GOVERNMENT, VOTE, I THINK IT'S PRETTY UNDERMINE OVERTIME OR TO REGULATIONS FOR SMALL BUSINESS. SO WE THINK THEY'RE GOING TO LEVEL IS THE NUMBER THAT'S BEEN BUT THE FEDS HAVE REALLY FIRST THINGS WE COULD DO,

$15,000, THEY WOULDN'T BE IN A POSITION WHERE THEY NEEDED TO I THINK THERE HAS TO BE MORE IN NEW MEXICO THAT ARE WORKING >> HOW ABOUT YOU, ANGELICA? >> I THINK THAT ACTUALLY ONE OF INSTITUTIONS, WHICH ARE NOT THE ONES WHO ARE THE TARGET OF ARE BEING CHARGED BECAUSE THIS TENS AND TENS OF MILLIONS OF DOLLARS OUT OF THE NEW MEXICO RATES THAT THEY CHARGE WHEN, IN ARE CHARGING, AT MOST, 20 TO 25%

INTEREST. >> IF WE BEGIN REGULATING THIS >> ABSOLUTELY. QUITE A FEW PAYDAY LENDERS HAVE THESE REGULATIONS ARE PUT IN >> IS THAT PROOF THAT THEY'VE >> I THINK IT IS. YOU KNOW, THERE'S NO QUESTION EMPLOYEES OF PAYDAY LENDERS AND PROVIDE US WITH INFORMATION OF FAIR LABOR STANDARDS ACT OFF THE BOOKS IN ORDER TO TRY TO BRING IN MORE BUSINESS. I THINK THAT, IN FACT, THEIR PAYDAY LOAN STORE AND SEE MORE >> WHAT ABOUT THE MORATORIUMS CAR TITLE LOAN LICENSES?

>> WELL, MY UNDERSTANDING, IN FACT, WAS THAT THE FINANCIAL INSTITUTIONS DIVISION HAD >> NOT CAR TITLES. >> SO THEY'RE -- >> THEY'RE AN ABSOLUTELY >> RIGHT. ACTUALLY, CAR TITLE SOPHISTICATED MARKET. PAYDAY LENDERS WILL ONLY LOAN TO PEOPLE WHO HAVE BANK ACCOUNTS, WHO HAVE PAYCHECKS OF FINANCIAL LITERACY AND ACCOUNT THAT THEY CAN BORROW AGAINST FOR PAYDAY LOANS. THAT'S WHAT THEY'RE BARTERING AWAY IN ORDER TO GET A LOAN. >> EMILY, HOW DID YOU DIG YOUR >> VERY SLOWLY. WITH A LUMP SUM OF MONEY. WHEN I GOT MY MONEY FROM

BORROWED. >> HAVE YOU SINCE GOTTEN SOME >> ALONG WITH INCREASE IN PAY GO. DON'T WANT TO DO THAT. THEY DON'T HAVE THE INCREASES IN >> CARTER, THE CAR TITLE LOANS THESE PAYDAY LOANS WITHSTAND THE >> I THINK A LOT OF THE SAME WELL. PAY SOMETHING OFF, SORT OF A REGULATIONS -- REALLY, I THINK,

THEY SAY, "WELL, I HAD SOME HAVE ALL OF IT, WE'LL TAKE OUT GET TRAPPED IN THIS CYCLE OF SO IF WE CAN STOP THAT KIND OF GETTING PEOPLE OUT OF THE CYCLE >> DAVID, IS IT POSSIBLE WITHIN CLEARLY EXPLAIN WHAT'S GOING TO >> OH, ABSOLUTELY. PAYMENT, WENT IN TO GET HER THE WAY, YOU'VE ONLY BEEN PAYING YOU STILL OWE US THE SAME AMOUNT INITIALLY." BUT WHEN WE LOOKED AT THE

CONTRACT, IT WAS NOT CLEAR THAT SHE WAS ONLY MAKING AN IN THREE YEARS. >> WE'VE GOT A LOT OF EDUCATION THAT'S ALL THE TIME WE HAVE. ONLINE FORUM. AND YOU CAN READ MORE ABOUT THE ABQTRIB.COM. STATE IN THE FACE OF MASSIVE