-
Amid pressure from regulators, Western Sky Financial plans to close for business early next month.
August 27 -
The Consumer Financial Protection Bureau and four state attorneys general on Monday announced a series of lawsuits against CashCall Inc., a California-based online loan servicer accused of usury and deceptive collection practices through its affiliation with the online lender Western Sky.
December 16 -
Actions jointly announced against California-based CashCall signal the Consumer Financial Protection Bureau's intent to target online lending based on claims originating in states.
December 16 -
Online lender Western Sky Financial says it has laid off 94 employees on a South Dakota Indian reservation following its decision to suspend operations.
September 3 -
Eric Schneiderman, New York's top law enforcer, filed a suit Monday against three online lenders and their owners, alleging that they violated usury laws by making loans that carry annual interest rates of between 89% and 335%.
August 12
The online lender Western Sky and the online loan servicer CashCall agreed to pay $1.5 million in penalties and stop collecting interest on outstanding loans to New York borrowers in a
Schneiderman
The settlement, which awaits court approval, requires the companies to refund New York borrowers who have paid more than the amount of their loan principal plus a 16% interest rate.
The agreement could give New Yorkers more than $35 million in debt relief, according to a press release from Schneiderman's office.
"With this agreement, thousands of New Yorkers exploited by Western Sky and CashCall will get the relief they are owed," Schneiderman said in the release. "As individuals in New York and across the country continue to face tough economic times, we must keep up the fight against those who exploit and scam them. Illegal collectors and lenders, in particular, must pay a price for their behavior and pay back the New Yorkers they harmed."
The companies made nearly $40 million in loans to New Yorkers since 2010, according to the release.
Western Sky, which is based in the Cheyenne River Indian Reservation in South Dakota,
CashCall, which is based in Anaheim, Calif., continued collecting payments on Western Sky loans after state investigations had declared the loans void, prompting a lawsuit from the Consumer Financial Protection Bureau in December.
"It is unfair to collect money that consumers do not owe on loans that do not legally exist," CFPB Director Richard Cordray said in a
Attorneys general in Colorado, North Carolina, New Hampshire and Indiana