In legal scuffle is Fastbucks and New Mexico Attorney General

In New Mexico, the lawsuits are flying between the Attorney General and loan business Fastbucks. Last year attorney General Gary King filed a lawsuit against Fastbucks. Fastbucks decided to sue back. At issue? New regulations on payday loan lenders that Fastbucks fought in court in 2006.

Article Resource: Fastbucks and New Mexico Attorney General in legal scuffle by Personal Money Store

The first lawsuit against Fastbucks

The lawsuit that began this tete-a-tete New Mexico was filed by Gary King against Fastbucks and one other instant payday loan business. The suit was a civil suit and was scheduled for July 6. 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 did not attend the session.

Fastbucks and their countersuit

In the Roswell district court, Fastbucks filed a countersuit to the Attorney General. Fastbucks explains 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 moved. Because the counter suit was filed in a different district than the original, there may be some issues of jurisdiction.

The 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 payday loans charge too much money for the lending service they provide. Fastbucks and many of the other stores that deal in payday advance loans say that they are being unfairly targeted for providing lending to high-risk customers. Providing an instant payday loans is an expensive proposition, so the interest rates are high. Many states and attorney generals are taking action against these businesses, saying they take unfair advantage.