In one of New Mexico’s most significant financial investigations, the FastBucks scandal rocked the state, leaving thousands of victims in its wake.

Unconscionable Practices

Former Attorney General Hector Balderas labeled the FastBucks scandal as the worst example where consumers are getting screwed in the history of the state of New Mexico. The company, operating in five states including New Mexico, preyed on low-income individuals with exorbitant interest rates, some as high as 650%.

Staggering Impact

The repercussions were devastating, with tens of thousands of New Mexicans falling victim to FastBucks’ predatory lending practices. Over an 11-year period, the company amassed a staggering $116 million from 44,000 customers in New Mexico alone.

Legal Battles and Victories

Legal action against FastBucks began in 2009 when Attorney General Gary King filed a civil lawsuit. The court ruled in favor of the state, ordering FastBucks to pay a monumental $32 million in restitution, heralded as a victory for New Mexico families.

Evading Justice

Rather than comply with the judgment, FastBucks filed for bankruptcy and rebranded itself as Infinity Loans. This maneuver allowed them to continue operating under a new name while evading their financial obligations.

Regulatory Oversight Failure

The State of New Mexico unwittingly aided FastBucks’ deception by approving Infinity Loans’ license applications without recognizing its ties to FastBucks. Despite being aware of the $32 million judgment against FastBucks, state regulators approved Infinity Loans’ applications, facilitating the company’s reincarnation.

Legal Reckoning

In 2021, a new lawsuit was filed, alleging deception and asset transfer to circumvent the court-ordered judgment. FastBucks CEO Charles Horton settled the case, agreeing to pay New Mexico $664,000, with additional funds sought from various properties owned by Horton.

Closure and Lessons Learned

The FastBucks saga concludes after 14 years, with New Mexico’s longest-running consumer protection case coming to an end. However, the impact on victims lingers, highlighting the need for stricter regulations. In response, the New Mexico Legislature capped interest rates for loan companies at 36% in 2022.

Conclusion: Ending Predatory Lending

The FastBucks scandal serves as a stark reminder of the devastating consequences of predatory lending practices. While justice has been pursued, the ordeal underscores the necessity of robust regulations to protect vulnerable consumers. New Mexico’s legislative action marks a step towards preventing such exploitation in the future.

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