AG Sues Pair of Small Loan Companies...Exorbitant Interest Rates Unconscionable
Thursday, June 18, 2009
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Attorney General Gary King today filed two lawsuits against two separate small loan companies alleging that the interest rates charged by the companies are unconscionable and in violation of the New Mexico Unfair Practices Act.
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State of New Mexico
Office of the Attorney General
Gary K. King
NEWS RELEASE
Thursday, June 18, 2009
Contact: Phil Sisneros 505-827-6792 Lynn Southard 505-222-9048
AG Sues Pair of Small Loan Companies
Exorbitant Interest Rates Unconscionable
(ALBUQUERQUE)---Attorney General Gary King today filed two lawsuits against two separate small loan companies alleging that the interest rates charged by the companies are unconscionable and in violation of the New Mexico Unfair Practices Act.
On behalf of the State of New Mexico and the public, AG King filed suits against B & B Investment Group, d/b/a/ Cash Loans Now, operating in Farmington, and against Fastbucks, doing business in several locations throughout the state.
"In 2007, New Mexico adopted legislation that regulated the payday loan industry to protect consumers from excessively high interest rates and unfair business practices," says Attorney General King. "But these small installment lenders are using a loophole in the law to continue to charge extremely high rates, in some cases, more than one-thousand percent. These practices take advantage of consumers and are against public policy."
The lawsuits ask the court to declare the interest rates charged to be unconscionable and in violation of New Mexico law and seek to enjoin both companies from violating the law. Additionally, the suits request restitution for affected consumers.
Individuals who have loans with either company may file a consumer complaint by contacting the New Mexico Attorney General’s office at 1-800-678-1508 or (in Albuquerque) 222-9100. Consumers may also download a complaint form at www.nmag.gov to send in to the Consumer Protection Division.
Both lawsuits were filed in District Court in Santa Fe.
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