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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 -
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 -
At least nine lenders have halted operations in the three weeks since state regulators began pressuring banks to cut off their access to the payments system.
August 28
New York consumers who paid exorbitant interest rates to the online lender Western Sky and the online loan servicer CashCall can begin filing claims to collect refunds.
New York Attorney General Eric Schneiderman said Tuesday that more than $20 million is available to New York residents who took out loans from the now-defunct Western Sky and paid it or CashCall, its Anaheim, Calif.-based servicer, more than the proceeds of the loan plus the legal interest rate of 16%.
To receive a refund, eligible borrowers must submit a claim to the settlement fund administrator, Feinberg Rozen LLP, by Aug. 5. All borrowers eligible to obtain a refund were sent claim forms last month.
The amount of each borrower's refund depends upon how much illegal interest they paid Western Sky, CashCall, or a party collecting on their behalf. But many eligible borrowers will receive a refund of more than $1,000, Schneiderman said in a press release.
The companies
"In these tough economic times, my office will continue to pursue all avenues for consumers and seek justice against anyone who defrauds them," Schneiderman said in the release.
