AG: Ruling means small NM borrowers owed $10M
Posted at: 09/27/2012 11:13 AM
By: The Associated Press
ALBUQUERQUE, N.M. (AP) - A New Mexico district judge's ruling could mean millions for consumers who took out small loans from a Dallas-based lender.
New Mexico Attorney General Gary King says his office's three-year legal battle against FastBucks, LLC, ended this week with a ruling saying the company took advantage of borrowers "to a grossly unfair degree."
King says the state's consumers could recover more than $10 million. The ruling issued Monday by Santa Fe District Judge Michael Vigil found that FastBucks crafted their installment loans to circumvent a 2007 law reining in payday loan abuses.
King alleged the loans carrying interest rates from 520 percent to 650 percent were unconscionable under the New Mexico Unfair Practices Act.
FastBucks lawyer David Streubel tells the Albuquerque Journal the company plans an appeal.
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