Indiana Attorney General Greg Zoeller and the Indiana Department of Financial Institutions (DFI) have reached the settlement agreement with Western Sky Financial LLC, CashCall, Inc., WS Funding, LLC, Delbert Services Corporation, and John Paul Reddam. It affected more th an 10,000 Indiana residents.
A settlement administrator will mail refund checks to the consumers identified in the settlement, all at the defendants expense.
“There are few cases that are as outrageous as this one where consumers were taken advantage of during a time of need,” Zoeller said. “Not only will consumers receive some restitution but these kinds of acts will be halted for years to come.”
As part of the settlement, the defendant companies have been ordered to:
** Repay $1 million dollars in restitution for illegal loan costs to Indiana consumers impacted by the high-priced loans.
** Cancel and adjust to a zero balance on loans that they own, service or collect.
** Notify credit reporting agencies to remove credit information for the loans from the consumers’ credit files.
** Cease all consumer and small loan lending activity within Indiana for two years.
** After the two year ban, not participate in direct or indirect servicing, collecting, consumer lending activity, or attempt to service or collect consumer loans without a proper license issued by the DFI.
** Notify all persons and entities who previously purchased or who were assigned loans from the defendants that the loans have been discharged, forgiven, and that the Court has determined the loans are legally unenforceable.
** Comply with the Indiana Uniform Consumer Credit Code and the Indiana Deceptive Consumer Sales Act.
In a press release from the Attorney General’s office, they say Western Sky and CashCall serviced and collected personal loans with annual percentage rates greatly exceeding those authorized by Indiana law.
