New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 18 - LOAN COMPANIES › Part 4 - MANDATORY SIGNAGE FOR SMALL LOAN BUSINESSES › Section 12.18.4.8 - MANDATORY SIGNAGE FOR SMALL LOAN BUSINESSES

Current through Register Vol. 35, No. 13, July 16, 2024
A. All small loan companies must display in
				each licensed place of business a prominent sign, readily visible to borrowers,
				disclosing the annual percentage rate and fees. The prominent sign in a reduced
				form, with font, no smaller than 10-point, must be displayed at every
				workstation where loans are originated. On all company websites, social media
				pages, and mobile applications where content regarding loans offered or made to
				borrowers in New Mexico may be accessed by consumers, the prominent sign, in a
				reduced form, shall be easily accessible to consumers to review via an
				interactive link to a New Mexico specific web page maintained by the company
				containing all information required to be on the sign mandated by this
				section.
B. The lettering on the
				prominent sign must be no smaller than 24-point font, unless specified
				otherwise.
C. The sign must state
				in bold capital letters, the words, "LOAN RATES AND FEES."
D. Below the words "loan rates and fees," in
				bold capital letters, the sign shall state, "BELOW IS GENERAL INFORMATION
				REGARDING ALL RATES AND FEES THAT WILL ASSIST YOU IN MAKING YOUR LOAN DECISION.
				IF YOU HAVE ANY QUESTIONS, OR WOULD LIKE MORE INFORMATION, PLEASE ASK. MAKE
				CERTAIN THE QUESTIONS THAT YOU ASK ARE ANSWERED. MAKE CERTAIN YOU UNDERSTAND
				THE TERMS AND COSTS OF YOUR LOAN."
E. The disclosure shall consist of two
				distinctive sections. Each section heading must be printed from left to right.
				The borders for the two section headings must be more prominent than the
				others.
(1) The first heading shall have in
				bold capital letters the words, "ANNUAL PERCENTAGE RATE (APR)" followed by the
				words in bold font, "The cost of your credit as a yearly rate. APR is a
				combination of the interest rate plus the fees charged on your loan. APR is
				higher than the interest rate because it includes both fees and interest as
				finance charges."
(a) Below the preceding
				sentences in bold type the following words shall appear: "Your actual terms and
				the Annual percentage rate (APR) will be determined at the time your
				application is submitted and will be based upon your application and credit
				information. Not all applicants will qualify for the lowest rate."
(b) Below the preceding sentences in bold
				type the following words shall appear: "The calculation of APR is mandated
				pursuant to Federal Law ( 12 CFR Part 1026 - Truth in Lending Act ("TIL-APR")).
				It is intended to provide a single value for a consumer to compare the cost of
				credit between one lender and another. Under New Mexico law, an additional type
				of annual percentage rate ("NM-APR") must be disclosed, which may include
				additional charges that are not included in the TIL-APR. The NM-APR for a loan
				in an amount of more than $500 and up to $10,000 made pursuant to the Small
				Loan Act of 1955 or the Bank Installment Loan Act of 1959 cannot exceed
				thirty-six percent. The NM-APR for a loan in an amount of $500 or less made
				pursuant to the Small Loan Act of 1955 or the Bank Installment Loan Act of 1959
				cannot exceed thirty-six percent plus a fee that shall not exceed five percent
				of the total principal of the loan and shall not be imposed on any borrower
				more than once per 12-month period."