Attorney General King Blasts Loan Company Bankruptcy
Attorney General Gary King is accusing a Texas loan company of trying to "weasel out" of paying New Mexico consumers $20 million in court-ordered restitution.
In September, Santa Fe Judge Michael Vigil ordered FastBucks to stop offering high-interest loans in New Mexico and to make the payments. But last month, the company filed for bankruptcy in Dallas, which King says automatically stays any state court actions.
Additionally, King has filed a motion to have FastBucks held in contempt, saying the company continues to offer loans with annual interest rates of just under 400 percent in New Mexico, in violation of the court order. Vigil's permanent injunction prohibits FastBucks from charging more than 15.50 per $100 borrowed on New Mexico loans.
FastBucks did not immediately respond to a telephone message seeking comment from its legal department.
Copyright 2013 The Associated Press.