State of New Mexico ex rel. King v. B&B Investment Group, Inc.

B&B Investment Group (defendant) offered small loans of $50 to $300 to indigent, often unbanked New Mexico residents at annual percentage rates between 1,147% and 1,500%, using hurried signing processes, misleading generalizations about payments, and no disclosure of amortization schedules to borrowers who often didn't understand basic interest-rate concepts; borrowers Wellito and Charley, for instance, took out $100 and $200 loans carrying finance charges of nearly $1,000 and over $2,000 respectively. New Mexico's Attorney General (plaintiff) sued under the state's Unfair Practices Act alleging unconscionability, and the district court found the loans procedurally unconscionable but declined to find substantive unconscionability absent a statute expressly capping interest rates, granting an injunction but denying restitution; both parties appealed.