Minnesota Reaches $4.5 Million Payment with Unlicensed Payday Lender

Minnesota Reaches $4.5 Million Payment with Unlicensed Payday Lender

Officials state pay day loan company CashCall attempted to evade legislation by improperly invoking tribal sovereign resistance.

By William Bornhoft , Patch Staff

The Minnesota Commerce Department and Attorney General has already reached a sweeping $4.5 million settlement by having a California-based internet payday lending business that victimized 1000s of Minnesotans with unlawful, high-interest loans.

The settlement is by using CashCall Inc., its companies that are affiliated owner J. Paul Reddam.

« Our company is dedicated to protecting customers and breaking down on illegal, misleading financing methods that victimize susceptible Minnesotans. »

CashCall financed high-interest, quick-approval pay day loans to customers online, according to a news launch.

Officials say CashCall attempted to evade state customer defenses by improperly invoking tribal sovereign resistance and conducting business through a front business, Western Sky Financial, a business made up of ownership by a person who had been an associate associated with the Cheyenne River Sioux Tribe in Southern Dakota.

But, the real tribe had no affiliation because of the company.

The Commerce Department and Attorney General jointly filed case against CashCall, alleging that the business involved in unlicensed financing in Minnesota, falsely reported affiliation that is tribal circumvent state rules and illegally charged annual interest levels up to 342 %. Continuer la lecture de « Minnesota Reaches $4.5 Million Payment with Unlicensed Payday Lender »