Small Loan Companies: Payday Lending
Small Loan Licensees that offer “Payday” loans must ensure that they are in full compliance with sections §58-15-32 through §58-15-38 of the New Mexico Small Loan Act.
“Payday” loans are loans in which the licensee accepts a personal check or debit authorization tendered by the consumer and agrees in writing to defer presentment of that check or use of the debit authorization until the consumer's next payday or another date agreed to by the licensee and the consumer and:
- Includes any advance of money or arrangement or extension of credit whereby the licensee, for a fee, finance charge or other consideration:
- Accepts a dated personal check or debit authorization from a consumer for the specific purpose of repaying a payday loan;
- Agrees to hold a dated personal check or debit authorization from a consumer for a period of time prior to negotiating or depositing the personal check or debit authorization; or
- Pays to the consumer, credits to the consumer's account or pays another person on behalf of the consumer the amount of an instrument actually paid or to be paid pursuant to the New Mexico Small Loan Act of 1955; but
- Does not include:
- An overdraft product or service offered by a banking corporation, savings and loan association or credit union; and
- Installment loans
Payday Lending FAQs
Q: What company has the Director of the Financial Institutions Division certified as a consumer reporting service?
Click here for a copy of the Director’s Order Certifying Veritec Solutions, LLC as a Consumer Reporting Service.
Q: I am currently licensed as a Small Loan Licensee. How can I start offering Payday loans?
You must contact Veritec Solutions, LLC. Veritec Solutions, LLC is the company certified by the Director to provide small loan licensees a commercially reasonable method of verification to verify that the proposed payday loan agreement is permissible under the provisions of the New Mexico Small Loan Act of 1955 [58-15-31 NMSA 1978]. To schedule training for your company, receive interface specifications, or if you have any specific questions for Veritec Solutions, LLC call (877) 667-3514.
Veritec Solutions, LLC informational links:
Veritec Payday Loan Transaction System Welcome Package
Corporate Profile Form
ACH Authorization Form
Licensee FAQs from Veritec Training
Q: How do I obtain a copy of the required Disclosure of Consumer's Right to Payment Plan? In lieu of orally reading the Right to Payment Plan, can an audio recording be used? Yes
The Financial Institutions Division provides the form in both English and Spanish. Click on the links below for a copy of the form.
Q: Did the Financial Institutions Division issue a regulation regarding “Payday” loans?
Click here for Payday Loan Rules effective November 1, 2007
Q: Does the Financial Institutions Division publish a report on payday lending?
Click here for Payday Loan Annual Report 2012
Click here for Payday Loan Annual Report 2011
Click here for Payday Loan Annual Report 2010
Click here for Payday Loan Annual Report 2009
Click here for Payday Loan Annual Report 2008
Q: What were the final RFI Questions and Responses Regarding Payday Loan Consumer Reporting Services?
RFI informational links:
National Delayed Deposit Services Network Link