Abstract
American consumers are carrying record-breaking credit card debt. As prices remain high and wages remain stagnant, short-term borrowing is common practice for many and unavoidable for some. Meanwhile, borrowing has never been easier. Several years ago, few consumers could imagine the widespread availability of “zero-interest, no-credit-impact” lending. Now, consumers can quickly obtain these pay-in-four “Buy Now, Pay Later” (BNPL) loans to purchase just about anything. The BNPL companies offering these loans market themselves as the smart shopping credit alternative for responsible budget management, and Millennial and Generation Z shoppers have rapidly embraced this new lending option. Yet, BNPL companies insufficiently disclose the risks and negative financial consequences of their unsecured loans. And corrective federal oversight is unlikely. As a result, younger consumers of color are more likely to be on the wrong end of a bad deal, particularly in New Mexico where younger consumers struggle with some of the lowest wages and highest unemployment rates in the nation. This economic reality, combined with an uptick in BNPL lending for everyday purchases, creates a seemingly untenable situation. Although New Mexico has express regulatory power over BNPL companies, its laws do not address BNPL-specific concerns that, if left unaddressed, will lead to long-lasting financial harm for vulnerable consumers. This Comment argues that New Mexico regulators have broad authority to act—and must act—under existing state law to strengthen BNPL company oversight and begin addressing these concerns. Swift government action, paired with a long-term solution, is the only way to ensure that vulnerable New Mexico consumers get the fair credit deal that they need.
Recommended Citation
Laura Creech,
Buy Now, Pay Dearly Later?: Minimizing Consumer Harm Under New Mexico’s Small Loan Regulations,
55
N.M. L. Rev.
207
(2025).
Available at:
https://digitalrepository.unm.edu/nmlr/vol55/iss1/6
