By Jessica Dyer / Journal Staff Writer
Monday, July 22nd, 2019 at 12:05am
Copyright © 2019 Albuquerque Journal
A huge selection of city of Albuquerque workers have actually borrowed a lot more than $600,000 by way of a program that is new as an option to pay day loans – one the town helps promote and administer.
California-based Employee Loan Systems offered 316 of their “TrueConnect” short-term loans to Albuquerque’s municipal workers underneath the auspices of the 2018 contract aided by the town. The loans feature a 24.99% rate of interest in addition to town immediately deducts loan payments – made over year – from employees’ paychecks.
TrueConnect netspend Installment loans indiana provides “an selection for employees that are going or having by way of a difficulty or have been in a crisis situation that renders them in serious straits, ” said Patricia Martinez, deputy director of Albuquerque’s Human Resources Department.
Brand New Mexico has about 600 licensed payday, name as well as other little loan providers, in accordance with the state legislation and Licensing Department internet site. Those businesses may charge interest prices as much as 175percent.
Officials think about use of the loans an element of the city’s benefits package, having an advertisement that is trueconnect the town’s employee benefits handbook that touts the convenience regarding the application procedure and quick option of funds.