Section 58-15-34 - Payday loan products; prohibited acts.
58-15-34. Payday loan products; prohibited acts.
A licensee shall not:
A. enter into an agreement for a renewed payday loan or otherwise refinance or extend the term of a payday loan;
B. enter into an agreement for a payday loan with a consumer who is participating in a payment plan pursuant to Section 58-15-35 NMSA 1978;
C. threaten or intimidate a consumer or threaten to use or request the use of criminal process in this or another state to collect on a payday loan product;
D. use a device or agreement that would have the effect of charging or collecting more fees, charges or interest than that allowed by law by entering into a different type of transaction with the consumer that has that effect;
E. require a consumer to enter into a new payday loan to pay an existing payday loan in whole or in part when the existing loan is eligible for a payment plan pursuant to Section 58-15-35 NMSA 1978;
F. charge a fee to cash a check representing the proceeds of a payday loan product;
G. charge a late fee or delinquency charge if a consumer fails to repay a payday loan product on time;
H. assign or attempt to assign a consumer's personal check to a third party unless for collection purposes;
I. use or attempt to use the check written by the consumer for a payday loan product as collateral for purposes other than repaying that payday loan product;
J. require a consumer to provide multiple checks or multiple debt authorizations;
K. accept collateral for a payday loan product other than the consumer's check or debit authorization or require a consumer to provide a guaranty from another person for a payday loan product;
L. include any of the following provisions in a payday loan product agreement:
(1) a hold harmless clause;
(2) a confession of judgment clause or power of attorney;
(3) an assignment of or order for payment of wages or other compensation for services;
(4) a waiver of claims for punitive damages;
(5) a provision in which the consumer agrees not to assert a claim or defense arising out of the contract;
(6) a waiver of a provision of the New Mexico Small Loan Act of 1955 [58-15-31 NMSA 1978];
(7) a waiver of the right to enter into a payment plan pursuant to Section 58-15-35 NMSA 1978; or
(8) a waiver of any rights secured by New Mexico law;
M. make a payday loan product contingent on the purchase of insurance or other goods or services;
N. take a check, instrument or form in which blanks are left to be filled in after execution of the check, instrument or form;
O. offer, arrange, act as an agent for or assist a third party in any way in the making of a payday loan product unless the third party complies with all applicable federal and state laws and regulations;
P. knowingly enter into a payday loan product with a consumer who lacks the capacity to consent; or
Q. use an agency agreement or partnership agreement as a scheme or contrivance to circumvent the application of the provisions of the New Mexico Small Loan Act of 1955 to a consumer's payday loan product. For the purposes of this subsection:
(1) "agency agreement" means any agreement between in-state entities and a banking corporation, savings and loan association or credit union operating under the laws of the United States or of any state whereby the in-state agent holds a predominant economic interest in the revenues generated by a payday loan made to New Mexico residents; and
(2) "partnership agreement" means any agreement between in-state entities and a banking corporation, savings and loan association or credit union operating under the laws of the United States or of any state whereby the in-state partner holds a predominant economic interest in the revenues generated by a payday loan made to New Mexico residents.