Payday Loan Lowdown

Things seem to be getting brighter and brighter on the payday loan front — sorry, it is only getting brighter for consumers, not the payday firms. New Mexico Gov. Bill Richardson and Attorney General Patricia Madrid recently filed new payday lending regulations that are supposed to better protect consumers against predatory lending practices. Charlotte.bizjournals.com reports:

The regulations would require all payday loans be interest free and charges would be capped at $15.50 per $100 loan. It also would allow consumers to enter into a longer payment plan, a minimum of 130 days, after a second renewal of the loan. Consumers would be allowed to borrow only amounts not greater than 25 percent of their gross monthly incomes.

Read more: State officials file new payday lending regulations