In January, 2014, New York Attorney General Erik T. Schneiderman announced that his office had reached a settlement with Western Sky Financial, CashCall, WS Funding, and their owners for violations of New York’s usury and licensed lender laws in connection with personal loans made over the internet. The usurious loans were made at interest rates ranging from 89% to 355%. The settlement involves repayment to borrowers who paid back the principal plus the legal interest rate of 16% and modification of all outstanding loans. The companies will also be required to pay $1.5 million in penalties. The settlement was approved on April 29, 2014. Consumers who are eligible for a refund should be contacted by the fund administrator within 90 days of the court’s approval of the settlement and asked to submit a claim. Questions may be directed to the Attorney General’s Consumer Helpline at: (800) 771-7755.
Tags: Predatory Lenders, Sanctions
