In New Mexico, the lawsuits are flying between the Attorney General and loan business Fastbucks. Attorney General Gary King filed a lawsuit against Fastbucks. Fastbucks sued back. At issue? New regulations on payday loan lenders that Fastbucks fought in court in 2006.
Against Fastbucks, the original lawsuit
The lawsuit that started this tete-a-tete New Mexico was filed by Gary King against Fastbucks and one other instant pay day 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 also the New Mexico Attorney General were to attend mediation, but the Attorney General didn’t show up to the session.
Fastbucks and their countersuit
Within the Roswell district court, Fastbucks filed a countersuit to the Attorney General. Fastbucks alleges the Attorney General is suing them to “create legislation with litigation.” The suit also explains the case has been filed as a response to the failure of the legislation to pass in 2006. A court date isn’t set yet. It is possible the New Mexico Attorney General may file for the judging of the suit to be taken away. Since the counter suit was filed in a different district than the original suit was filed in, there may be issues of jurisdiction.
Probably the most essential arguments
The arguments in the New Mexico case end with the question of “unconscionable trade practices.” The Attorney General of New Mexico says that these instant paycheck loans 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 is an expensive proposition, so the interest rates are high. Many states and attorney generals have been taking action against these companies, saying they take unfair advantage.
