Payday loans in New Mexico: the rules and your way out

New Mexico's rules, line by line

Largest loan

Small Loan Act covers loans of $10,000 or less (NMSA 1978, 58-15-3(A), (F)); no separate payday amount.

Shortest term

120 days. A lender may not make a Small Loan Act loan with an initial stated maturity of less than 120 days unless it is a refund anticipation loan (58-15-17(G)).

Fee or rate cap

"A lender shall not make a loan pursuant to the New Mexico Small Loan Act of 1955 that has a permitted annual percentage rate greater than thirty-six percent", counting finance charges, ancillary products and credit insurance, but excluding amounts paid to public officials and one fee of up to 5% of principal per 12 months on loans of $500 or less (58-15-17(J), as amended by Laws 2022, HB 132, effective Jan. 1, 2023). The cap rises point for point if the prime rate exceeds 10% for three consecutive months (58-15-17(L)).

Renewals and rollovers

Any rollover, renewal, refinance or modification with added cost is a new loan requiring new Truth in Lending disclosures (58-15-17(P)), and it remains subject to the 120-day minimum, four-installment and 36% rules.

Payment plan if you cannot pay

No statutory payday extended payment plan; payday-style loans are not permitted. Every Small Loan Act loan (other than a refund anticipation loan) must be an installment loan repayable in at least four substantially equal payments of principal and interest (58-15-17(H)-(I); definition in 58-15-2(F)).

State loan database

No.

Limits on collection

A loan made in violation of the licensing requirement, the anti-evasion rules, or the rate and term rules in 58-15-17 is void, and the lender has no right to collect, receive or retain any principal, interest or charges (58-15-3(E)). Interest may not exceed 10% a year on the unpaid principal starting 12 months after maturity (58-15-17(F)), or 90 days after the borrower's death (58-15-17(E)). A loan of $10,000 or less made outside New Mexico to a New Mexico resident at a higher rate than New Mexico allows cannot be enforced in the state (58-15-24).

Other rights

On request, a licensed lender must give the borrower copies of all loan agreements and receipts and a written loan history showing all fees, the amortization schedule, payments and the unpaid balance; records are kept seven years (58-15-17(O)). Anti-evasion rules reach online lenders and 'rent-a-bank' arrangements regardless of physical location (58-15-3(D)). Violations that are unfair, deceptive or unconscionable can be pursued under the Unfair Practices Act (58-15-3(G)).

If you are behind on a payday loan in New Mexico

1. Check whether the loan was legal to make. New Mexico does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the New Mexico Regulation and Licensing Department, Financial Institutions Division through its complaint page.
2. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
4. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

• Check whether a lender is licensed in New Mexico
• File a complaint with the New Mexico Regulation and Licensing Department, Financial Institutions Division
• File a complaint with the Consumer Financial Protection Bureau

Sources

• New Mexico Legislature, 2022 Regular Session HB 132 (final, as passed), amending NMSA 58-7 and 58-15, read 2026-10-24
• NM RLD Financial Institutions Division, Small Loan Companies, read 2026-10-24
• NM RLD Financial Institutions Division, File a Complaint, read 2026-10-24
• NM RLD, Verify a License (links NMLS Consumer Access), read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.