Updated: 06/27/2014 4:06 PM |
Created: 06/27/2014 3:19 PM
By: APNewsNow, Associated Press
ALBUQUERQUE, N.M. (AP) - New Mexico Attorney General Gary King says thousands of people may receive money back from high-interest lenders thanks to a state Supreme Court ruling.
King said Friday that the ruling against two lenders who were charging as much as 1,500 percent means his office can begin pursuing cases against dozens of other companies.
The New Mexico Supreme Court cracked down Thursday on small consumer loans carrying quadruple-digit interest rates.
Justices said the high-cost "signature loans" violated the state's Unfair Practices Act and the interest-rate terms were "substantively unconscionable."
The justices also capped interest rates at 15 percent for loans by two companies that had been charging an annual percentage rate from 1,147 percent to 1,500 percent.
King says dozens of other similar companies are operating in New Mexico.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)