Regulatory Alerts2023-01-04
Regulatory Alert on Buy-Now-Pay-Later Products - Updated 01-04-2023
The New Mexico Financial Institutions Division issued an updated regulatory alert clarifying that buy-now-pay-later products with loan amounts of $10,000 or less constitute small loans subject to state licensing requirements. The Division determined that these products fall under the New Mexico Small Loan Act and Bank Installment Loan Act, rejecting arguments that zero-interest rates or lack of physical presence exempt providers from regulation. Consequently, any company offering such loans to New Mexico residents must obtain a license and comply with state laws to avoid direct violations.
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