Minnesota AG Tells CashCall and Western Sky to Pack Up Their Teepees and Refund VictimsThree years later, some closure in Lori Swanson's beatdown of CashCall and its Western Sky rental tribe, assisted by a "2015 Minnesota Supreme Court decision that held that out-of-state lenders have to follow Minnesota’s law for online loans", says the Minneapolis Star Tribune. Its report continues:
"CashCall Inc. must pay $4.5 million in restitution to consumers and cancel more than $5.2 million in outstanding balances on more than 2,200 loans. It must notify third parties that bought outstanding loan balances totaling more than $1.9 million that the debts on more than 1,100 loans would be forgiven." The pernicious payday lender is also banned from doing any more business in the state.
CashCall settled with the state for nearly $12M over claims that its rates broke laws - Star Trib
Online Lender Claiming Tribal Affiliation Must Refund, Cancel $11.6M In Payday Loans - Consumerist
The Attorneys General of Nebraska and North Carolina have made similar agreements in May and June this year. (Links are from the relevant state websites.)
AG Doug Peterson and Director of the Department of Banking Mark Quandahl Announce Settlement with Western Sky CashCall, Western Sky to pay NC $9 million plus for illegal loans CashCall and its cronies have been targeted by regulators and attorneys general in ten or fifteen states. Frankly I've lost count. CashCall was also sued by the FTC, then chosen by the CFPB as its first courtroom dance partner from the online loan industry.
previous 800Notes discussion:
Georgia Sues to Stop Pay Day Lending War Drums Keep Beating for Faux Native American Loan Scammers
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