We at CFIF have consistently highlighted the peril of federal, state and local government efforts targeting…
New Study Shows How Overregulating Short-Term Lenders Harms Consumers
We at CFIF have consistently highlighted the peril of federal, state and local government efforts targeting the short-term consumer lending sector.
Less than two years ago, we specifically sounded the alarm on a New Mexico law artificially restricting interest rates on short-term consumer loans.
Well, a new study entitled "A New Mexico Consumer Survey: Understanding the Impact of the 2023 Rate Cap on Consumers" that surveyed actual borrowers confirms our earlier warnings:
Key findings include:
•Short-term,small-dollar loans help borrowers manage their financial situations, irrespective of the borrower’s income.
•The rate cap has failed to improve the financial wellbeing of New Mexicans, specifically those who had previously relied on short-term, small-dollar loans.
