Section 58-15-35 - Payday loans; payment plans. - New Mexico Statutes

58-15-35. Payday loans; payment plans.

A.     At the time a consumer enters into a payday loan agreement, the licensee shall offer the consumer the opportunity to enter into an unsecured payment plan for any unpaid administrative fees and principal balance of the payday loan.  The consumer may elect, and a licensee shall permit, entry into a payment plan for any unpaid administrative fees and principal balance of the payday loan.   

B.     No fees, charges or interest may be charged for a payment plan.  

C.     A payment plan shall provide for: 

(1)     a minimum of one hundred thirty days for the repayment of the unpaid principal balance of a payday loan; and 

(2)     relatively equal installment payments based upon the consumer's schedule of pay periods.  

D.     A payment plan entered into pursuant to the provisions of this section shall not be considered an installment loan.  

E.     A licensee that fails to offer a consumer the opportunity to enter into a payment plan for a payday loan pursuant to Subsection A of this section shall not commence a legal proceeding against a consumer to collect on that payday loan if it has not been fully repaid.