Schneiderman Sues Lenders in Violation of State Laws

State Attorney General Eric Schneiderman is suing Western Sky Financial, LLC., Cashcall, Inc., WS funding, LLC., and their owners for violations of New York’s lender laws while issuing personal loans over the internet.

The companies charged annual rates of interest from 89-355 percent to thousands of New York consumers.

The maximum rate under NY law is 16 percent for most lenders not licensed by the state. Since 2010, the companies have made nearly 18,000 loans to New York consumers, lending more than $38 million.

Consumers in turn owed more than $185 million in interest alone. Consumers who received a loan of $1,000 were paying back nearly $5,000 over a two year period.

The suit calls for a return of interest over 16 percent to consumers, cancelling outstanding loans and placing up to a $5,000 penalty on the lenders for each violation.