In New Mexico, the lawsuits are going like crazy between the Attorney General and loan company Fastbucks. Last year attorney General Gary King filed a lawsuit against Fastbucks. Fastbucks sued back. What is apparently the issue? New regulations on private money lenders that Fastbucks fought and won in court in 2006.
Against Fastbucks, the original lawsuit
The lawsuit that began it all while in New Mexico was filed by Gary King against Fastbucks and one other instant payday loans no faxing company. The suit was a civil suit and was scheduled for July 6. The suit claimed that Fastbucks was responsible for “unconscionable” loans. The judge ordered that Fastbucks and the New Mexico Attorney General were to attend mediation, but the Attorney General didn’t show up to the session.
Fastbucks’ countersuit
In the Roswell district court, Fastbucks filed a countersuit to the Attorney General. Fastbucks says the Attorney General is suing them to “create legislation with litigation.” The suit also says that the case has been filed as a reaction to the failure of the legislation to pass in 2006. There is no court date 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 essential arguments
The arguments within the New Mexico case end with the question of “unconscionable trade practices.” The Attorney General of New Mexico says that these instant paydayloans charge too much money for the lending service they provide. Fastbucks says that they are being unfairly targeted for providing lending to high-risk customers. Providing an instant cash loans to any of the high-risk lending groups is an expensive proposition, so the interest rates are high. Many states and attorney generals are taking action against these companies, saying they take unfair advantage.
