New York AG Goes After Personal Loan Companies

Some charging annual interest rates up to 355 percent

New York Attorney General Eric T. Schneiderman filed a lawsuit against personal loan companies for charging annual interest rates as high as 355 percent.

The lawsuit was filed Monday against Western Sky Financial, LLC, CashCall Inc., WS Funding LLC, and CashCall owner J. Paul Reddam and Western Sky owner Martin Webb.

The companies charged annual interest rates of 89 percent to more than 355 percent, higher than the maximum rate of 16 percent allowed for lenders not licensed by New York state.

Comments

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In Wisconsin there are no interest caps on payday loans. The predatory parasites who run these businesses routinely charge around 500% and some over 100% for short term loans. I am dismayed that the state legislature does nothing about this. As our Tea Party governor, Scott Walker, likes to say, "Wisconsin is open for business."