Regulation

Payday Lenders Suit Settled

Another payday lender lawsuit has been settled.

This particular case relates to a predatory lending suit against CashCall and Western Sky Financial, who are accused of evading lending regulations by making false claims that they had tribal affiliation.

As a result of the outcome, the state of Nebraska will accept a $1.6 million settlement. This settlement comes just one day after the suit was filed in court.

“Nebraskans need to be protected from unscrupulous lending practices,” said Attorney General Douglas Peterson, according to reports. “This settlement will provide relief for many of our hardworking citizens who were taken advantage of by predatory online lender[s].”

As part of the settlement, the loan companies will be required to pay $950,000 in restitution, forgive $557,000 in debts, notify credit reporting agencies for credit history repair and stop lending in Nebraska.

According to reports, Western Sky loaned out money to more than 2,400 consumers online, which came with annual interest rates ranging from 89–342 percent — along with illegal fees, according to the attorney general. Western Sky and its owner, Martin Webb, claimed to be affiliated with the Cheyenne River Indian Reservation in South Dakota and told the consumers it lent money to that it did not have to follow Nebraska’s lending regulations.

CashCall has been accused of these allegations before by attorneys general in five other states.

——————————–

Exclusive PYMNTS Study: 

The Future Of Unattended Retail Report: Vending As The New Contextual Commerce, a PYMNTS and USA Technologies collaboration, details the findings from a survey of 2,325 U.S. consumers about their experiences with shopping via unattended retail channels and their interest in using them going forward.

Click to comment

TRENDING RIGHT NOW