Expense would offer New Mexico staff members individual loans

SANTA FE– New Mexico state workers would access to short-term individual loans that can be repaid through their incomes, under newly proposed legislation.Democratic state Sen. Expense Tallman of

Albuquerque said Monday that the bill is developed to ensure state employees can obtain modest quantities of loan without resorting to high-interest loans from shop lenders.New Mexico this year is capping annual rates of interest on small loans

at 175 percent in an effort to combat predatory loaning. Customer advocates say that limitation still is expensive and are promoting new lending alternatives for people and families that do not have access to traditional bank loans.Tallman’s proposal would limit rate of interest to 30 percent for qualified state employees, and cap repayment at 12 percent of

gross income or salaries. He stated the goal is to lower expenses and financial obligation problems on state workers. “It’s a great advantage we can provide to state workers,”stated Tallman, who previously worked as a city supervisor of a number of mid-sized municipalities outside New Mexico.Several regional federal government entities in New Mexico, from the City of Las Cruces to Santa Fe Public Schools, already have actually joined a program called TrueConnect that supplies staff members with short-term loans that are paid back from a part of salary.Santa Fe Public Schools uses its workers loans through TrueConnect of in between $1,000 and $3,000, district spokesman Jeff Gephart said. He stated the district does not make any cash off the loans, while paying its own administrative expenses.Tallman’s bill would

direct the New Mexico Department of Financing and Administration to devise a loan program. Mexico state federal government uses nearly 20,000 individuals. New Copyright 2018 The Associated Press. All rights scheduled. This product might not be released, broadcast, rewritten

or rearranged.

Source

http://www.santafenewmexican.com/news/local_news/bill-would-offer-new-mexico-employees-personal-loans/article_79315f0c-513f-5342-ae62-6567bf9ebd3a.html

Source