LAS VEGAS, NEW MEXICO – Candidate for Senate District 8, Melissa Fryzel, plans to slash the legal limit of super high interest loans in New Mexico as citizens of the state continue to fall victim to these lenders who prey on those in need of emergency cash while her opponent receives the predatory lender’s campaign donations.
“As District’s 8 new State Senator, I will introduce and fight for legislation to end these unethical, loan shark practices with outrageous interest rates on New Mexicans in need of fast cash,” says Fryzel. “Over the years, my opponent, Pete Campos, took in thousands of dollars in contributions from these unscrupulous lenders.” Fryzel wants to hear from Campos and ask why he favors charging New Mexicans 175% on pay day loans, car title loans and other emergency loans that have a 44% default rate1 and push people further into debt, doubling the likelihood of declaring bankruptcy with little hopes of paying back the money.
A 2017 FDIC study2 shows that fully one in three households (33.6%) in New Mexico live either without access to banks or bank credit and are forced to rely on super high interest loans to get through emergencies. “The cost of being poor in Pete Campos’ New Mexico is outrageously high,” says Fryzel. “He’s not fighting for families to succeed when he’s accepting campaign donations from these predatory lenders from all over the United States.” Fryzel will work to see that New Mexicans have access to fair loan products.
Today, there are 11 of these ‘predatory lenders’ in Las Vegas (many marketing to Highlands University students), four in Raton, four in Tucumcari and one in Santa Rosa. Many states have reformed these loans in recent years and these states limit interest to 36%. From 2010 to 2016, 32 reform bills died in the New Mexico State Legislature. “The Democrat-controlled New Mexico legislature is keeping a large group of New Mexicans down by failing to pass pro-consumer reforms,” says Fryzel. “I will work to reform this industry and I can promise you I won’t be taking campaign contributions from them.”
In 2017, Senator Campos voted in favor of loans at 175%, and since 2015 has accepted thousands of dollars in donations from the predator-loan industry, including one donor that has an “F” rating from the Better Business Bureau. “Senator Pete Campos has failed his constituents,” says Fryzel. “Students and adults alike are all drowning in debt as a result of these predatory lenders.” As a consequence, a person who borrows $5,000 over five years will pay $720 per month and nearly $40,000 in interest before paying off the principal.
See the original release documents here:
Melissa Fryzel is the pro-faith, pro-family and pro-freedom candidate for New Mexico Senate District 8. She is working to make New Mexico a viable and safe place for families and businesses to thrive. Help Paint New Mexico Red by visiting MelissaForNM.com. ###