What is a payday loan?
A payday loan is a short-term (a maximum of 35 days) personal loan secured by your personal check or your agreement to have the money owed taken out of your bank or credit union account at some future date. What is the most I can borrow with a payday loan? You can borrow no more than one-fourth (25%) of your gross monthly income. What is the most I can be charged for a payday loan? New Mexico law limits all charges and fees to no more than $15.50 for each $100 borrowed, plus a charge of 50 cents ($0.50) to pay for the cost of the verification database. For example, if you borrow $150, you can be charged no more than $23.75 ($15.50 for $100, plus $7.75 for the additional $50, plus $0.50 verification fees). Can I renew or extend my payday loan? No. New Mexico law prohibits “rolling over” a loan, or using a new loan to pay off an existing loan. You can take out a new loan after you pay off your previous loan. But if your previous loan has not solved your financial problem, another loan is
