Wednesday, June 23, 2010

Payday Loan Company Countersues AG

Fastbucks payday loans is hoping a Roswell judge will stop Attorney General Gary King's lawsuit against the company before it gets to the court of Santa Fe District Judge Michael Vigil.

Fastbucks on Friday filed a countersuit in District Court in Roswell asking a judge to stop what they call King's "malicious abuse of process."

The AG is suing Fastbucks and another payday loan company for making "unconscionable" loans. The Fastbucks suit, filed last year, lists several examples of exorbitant interest rates. Among those are a Crownpoint woman whose $800 Fastbucks loan called for her to pay nearly $4,200 and a Rio Rancho woman who took out a loan for $934 that ended up costing nearly $4,700.

A Fastbucks lawyer told me that more than 100,000 people use their service -- and that few have complained about the interest rates. I talked to one of those satisfied customers for my story in today's New Mexican. You can find that HERE.

The initial case is scheduled to begin next month, with jury selection starting July 6.

Here's a copy of Fastbuck's countersuit. Keep scrolling down to Page 11 and you'll find King's complaint against Fastbucks, list as "Exhibit 1."