N.M. Supreme Court: Credit union must use lawyers, not employees to sue debtors
In a class action brought by Treinen Law Office and Humphreys Wallace Humphreys, the New Mexico Supreme Court unanimously ruled that credit union employees who are not licensed attorneys cannot pursue debt collection lawsuits against consumers, even in small claims court. This decision arose from a class action lawsuit by consumers who had taken loans from Guadalupe Credit Union. The Court held that Guadalupe Credit Union had engaged in unauthorized practice of law by having non-attorney employees file lawsuits to collect debts. The court emphasized that banks, credit unions, and other corporations must be represented by licensed counsel in court, affirming the plaintiffs’ right to sue under New Mexico’s Unfair Practices Act for the credit union’s violations. The consumers seek return of all money they paid as a result of the unlawful lawsuits plus additional damages.