New Mexico Register / Volume XXIX, Issue 16 / August
28, 2018
This
is an amendment to 12.18.4 NMAC, title of part, and Sections 2, 6, 7, and 8,
effective 09/15/2018.
PART
4 MANDATORY SIGNAGE FOR
[PAYDAY LENDERS AND TITLE] ALL SMALL LOAN COMPANIES:
12.18.4.2 SCOPE: Loan companies conducting [Title
Loan and Payday Loan] business in New Mexico.
[12.18.4.2 NMAC - N, 10/1/2001, A, 09/15/2018]
12.18.4.6 OBJECTIVE: The objective of this part
is to require prominent signage disclosing the [schedule of charges to
obtain a] loan rates and fees to obtain a loan and to assist consumers
in the loan decision process.
[12.18.4.6 NMAC - N, 10/1/2001, A 09/15/2018]
12.18.4.7 DEFINITIONS:
[ A. “Title” loan means a loan secured by
the borrower’s vehicle title, which is structured to be a short term, fixed
rate, closed end transaction usually paid in one installment.
B. “Payday” loan means a loan where the
business operator cashes a personal check tendered by the customer and agrees
in writing to defer presentment of that check until the customer’s next payday,
or another date agreed to by the business operator and the customer.] “Annual Percentage Rate” or “APR” means the measure of the cost of credit, expressed as a
yearly rate.
[12.18.4.7 NMAC - N, 10/1/2001; A, 09/15/2018]
12.18.4.8 MANDATORY SIGNAGE FOR ALL SMALL LOAN COMPANIES:
A. All
[Title and Payday] small loan companies must display in each
licensed place of business a prominent sign, readily visible to borrowers,
disclosing the [schedule of charges] annual percentage rate and fees.
[The prominent sign in a reduced
form, with font, no smaller than 10-point, must be displayed at every
workstation where loans are originated.] On all company websites, social media pages,
and mobile applications where content regarding loans offered or made to
borrowers in New Mexico may be accessed by consumers, the prominent sign, in a
reduced form, shall be easily accessible to consumers to review via an
interactive link to a New Mexico specific web page maintained by the company containing
all information required to be on the sign mandated by this section.
B. The lettering on the prominent sign must be no smaller than 24-point font, unless specified otherwise.
C. The
sign must state in bold capital letters, the words, [“SCHEDULE OF CHARGES”]
“LOAN RATES AND FEES.”
D. Below
the words [“schedule of charges”] “loan rates and fees,” in bold
capital letters, the sign shall state, [“THE CHART BELOW REPRESENTS
ILLUSTRATIVE EXAMPLES OF THE COST OF A LOAN TO THE BORROWER.] “BELOW IS
GENERAL INFORMATION REGARDING ALL RATES AND FEES THAT WILL ASSIST YOU IN MAKING
YOUR LOAN DECISION.
IF YOU HAVE ANY QUESTIONS, OR WOULD LIKE MORE INFORMATION, PLEASE
ASK. MAKE CERTAIN THE QUESTIONS THAT YOU
ASK ARE ANSWERED. MAKE CERTAIN YOU UNDERSTAND
THE TERMS AND COSTS OF YOUR LOAN.”
E. The
[chart must have the following headings starting from left to right. The borders for the first two] disclosure
shall consist of two distinctive sections. Each section heading must be printed from left
to right. The borders for the two section
headings must be more prominent than the others.
(1) The
first heading shall have in bold capital letters the words, “ANNUAL PERCENTAGE
RATE (APR)” followed by the words in bold [14-point] font, “The cost of
your credit as a yearly rate. [Assumes a ______ day
repayment period. The
blank is to be replaced with the actual number of days used for the
illustrative Annual Percentage Rate calculation shown on the chart.] APR is a combination of the interest rate
plus the fees charged on your loan. APR
is higher than the interest rate because it includes both fees and interest as finance
charges.”
(a) Below
the preceding sentences in bold type the following words shall appear: “Your
actual terms and the Annual Percentage Rate (APR) will be determined at the
time your application is submitted and will be based upon your application and
credit information. Not all applicants
will qualify for the lowest rate.”
(b) Below
the preceding sentences in bold type the following words shall appear: “Under
New Mexico law, the APR for a loan in an amount of $5,000 or less made pursuant
to the Small Loan Act of 1955 or the Bank Installment Loan Act of 1959 cannot
exceed one hundred and seventy-five percent, effective January 1, 2018.”
(2) The
second heading shall have in bold capital letters the [words, “FINANCE
CHARGE”] word“FEES” followed by the
[in 14-point font] words: [“The
dollar amount the credit will cost you.”] “A list of all fees that you
may be charged.” The heading shall be
followed with a table containing a list of all fees that a borrower may be
charged.
[(3) The third heading shall have the
words, “Amount Financed” followed by the words in 14-point font, “The amount of
credit provided to you or on your behalf.”
(4) The fourth heading shall have the
words “Total of Payments” followed by the words in 14-point font, “The amount
you will have paid after you have made all payments as scheduled.”
(5) The fifth heading shall have the
words “Number of Payment(s) used in the APR calculation.”
F. Below
the chart headings, the company must have
illustrative examples of each class of loans the company offers.]
[G.] F. Below the [chart]
second heading in bold capital letters the following words shall appear:
“TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR
CALL ________________.” The
blank shall be filled in with a position title, address, phone number, and
email address of the company’s problem resolution person.
[H.] G. The bottom of the
sign shall have the following words, “This [business] lender is licensed
and regulated by the New Mexico Regulation and Licensing Department,
Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road,
Santa Fe, New Mexico [87505] 87504. To report any unresolved
problems or complaints, contact the division by telephone number (505) 476-4885
or visit the website http://www.rld.state.nm.us/financialinstitutions/”.
[12.18.4.8 NMAC - N, 10/1/2001; A, 08/13/2004; A, 09/15/2018]