Western Sky Financial had been making payday loans all over the United States and charging problematic interest rates. The company felt they were exempt from state laws because they are owned and operated by the Cheyenne River Sioux on an indian reservation.
While it was a good run while it lasted, no good loophole goes unclosed it seems.
A number of states had filed suit against the company and facing mounting legal battles the company decided as of September 3, 2013 it would no long fund new payday loans. Apparentlyit will continue to collect on the seeds they already sowed.
The company is the subject of actions by New York, Oregon, Colorado, Minnesota, and Maryland.
“There has been significant expansion of online lenders, and the driver is technology,” said Mark Kaufman, Maryland’s commissioner of financial regulation. “There is no doubt that the economics of the business change when you can sit behind a computer and make thousands of loans, versus sitting behind a desk and make a few in a day.” – Source
The state of New York suit filed recently apparently ruffled a few feathers. It intends to not only stop Western Sky from lending in New York but also to void the loans they have already made.
Before they go too far, Western Sky Financial posted this video to make us all so proud of what they have accomplished.
Of course we’ll always have the commercials to fondly remember.
And this one where you get a high cost loan to pay off your high cost payday loan.