New Mexico Attorney General and Fastbucks in legal scuffle

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. Fastbucks has counter sued. What is apparently the issue? New regulations on personal loan company that Fastbucks fought and won in court in 2006.

Article Source: Fastbucks and New Mexico Attorney General in legal scuffle

The first lawsuit against Fastbucks

The lawsuit that started this in New Mexico was filed by Gary King against Fastbucks and one other instant paydayloans company. The suit scheduled for July 6th was a civil suit. The suit claimed that Fastbucks was responsible for lending “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

In 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 alleges 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 the New Mexico Attorney General could just file for the judging of the suit to be moved. Since the counter suit was filed in a different district than the original, there may be some issues of jurisdiction.

The arguments that are essential

The arguments in the New Mexico case really just come down to the question of “unconscionable trade practices.” The Attorney General of New Mexico says that these instant pay day loan charge too much money for the lending service they provide. Fastbucks and other stores that deal in instant cash loan say 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 costly proposition, so the interest rates are high. Numerous states and attorney generals have taken action against these companies, saying they take unfair advantage.