Online Lender Says It Will Stop Funding Loans

August 27, 2013
Wall Street Journal  
payday lending news

Western Sky Financial LLC, an online lender with ties to the Cheyenne River Indian Reservation, has posted on its website that it will stop funding loans starting in September as a result of "recent interference by state and government regulators." 

The Timber Lake, S.D.-based company, which issues short-term loans bearing interest rates as steep as 355 percent, has been scrutinized by numerous state regulators who allege it breaches their respective laws governing high-risk loans. Western Sky was targeted in a lawsuit filed this month by New York Attorney General Eric Schneiderman accusing the company of charging exorbitant interest rates to low-income customers; and it also was among 35 online lenders that recently received cease-and-desist orders from the New York Department of Financial Services.

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