Despite a 2007 ruling by New Mexico lawmakers that protects consumers from excessive payday loan fees, the risk of running up interest still exists - and loans are becoming easier to obtain.
KOB-TV reports that online payday lending is on the rise in the state, and the convenience of obtaining quick cash without leaving the house has many residents applying. "It's making it easier to get in trouble, in the comfort of my own home, if I need a couple hundred bucks I can go online," Michael Ramos of Credit Rescue Now told the news source. However, Ramos adds that as long as payday loans paid off immediately, they aren't necessarily a bad thing. "If you pay it right away you're OK, but most people don't," he told the media outlet. "That's the problem." Payday loans aren't the only option for quick cash, though. Stricter regulations on payday loan interest rates have led to an increase in pawn shop transactions in Mexico, the Seattle Times reports. According to a recent release from the National Banking and Securities Commission, more than half of Mexico's municipalities don't contain traditional bank branches, resulting in more prevalent pawn shop and payday loan activity.