In New Mexico, the lawsuits are going like crazy between the Attorney General and loan company Fastbucks. Attorney General Gary King filed a lawsuit against Fastbucks last year. Fastbucks has counter sued. What appears to be the issue? New regulations on payday lending that Fastbucks fought and won in court in 2006.
Against Fastbucks, the original lawsuit
The lawsuit that started it all when in New Mexico was filed by Gary King against Fastbucks and one other instant pay day loan company. The suit scheduled for July 6th was a civil suit. The suit claimed that Fastbucks was responsible for giving out “unconscionable” loans. The judge ordered that Fastbucks and the New Mexico Attorney General were both going to attend mediation, but the Attorney General did not go to the session.
Fastbucks and their countersuit
In the Roswell district court, Fastbucks filed a countersuit to the Attorney General’s civil suit. Fastbucks says that the Attorney General is suing them to “create legislation with litigation.” The suit also says the case has been filed as a reaction to the failure of the legislation to pass in 2006. A court date isn’t set yet. It is possible that the New Mexico Attorney General may file for the judging of the suit to be taken away. Because the counter suit was filed in a different district than the original suit, there may be issues of jurisdiction.
The arguments that are essential
The arguments in the New Mexico case end with the question of “unconscionable trade practices.” The Attorney General of New Mexico believes that these instant payroll loans charge too much money for the lending service they provide. Fastbucks and numerous of the other stores that deal in payday cash advances say that they are being unfairly targeted for providing lending to high-risk customers. Providing an instant cash to high-risk lending groups is an costly proposition, so the interest rates are high. Many states and attorney generals have taken action against these companies, saying they take unfair advantage.
