SANTA FE, N.M. (AP) — The first witness in the state's case against a Texas-based payday lender that charges interest rates of 650 percent a year explained how she became overwhelmed by her debt.
Endowa Endwarrior told a court in Santa Fe Wednesday she took out an "installment loan" of $934 at an annual interest rate of more than 521 percent from a FastBucks office in Rio Rancho. Because the loan was extended for nearly a year, she ended up paying $4,680 on that loan according to her complaint.
The Santa Fe New Mexican (http://bit.ly/HoiySb ) reports the attorney general's office brought a lawsuit against FastBucks in 2009 seeking an injunction against its methods of "unconscionable" marketing and loan practices, restitution for customers who have been harmed and monetary penalties under the state's Unfair Practices Act.
Attorneys for FastBucks argued witnesses called by the state understood English and knew their loans would cost.
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Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com
Copyright 2012 The Associated Press.