Bryan Cohen Jul. 30, 2013, 6:04pm

ATLANTA, Ga. (Legal Newsline) - Georgia Attorney General Sam Olens filed a lawsuit Monday against Western Sky Financial LLC, Martin Webb, the company's owner and operator, and CashCall Inc. for allegedly violating the Pay Day Lending Act.

Western Sky and CashCall allegedly made illegal payday loans in Georgia through their websites. The state's Pay Day Lending Act prohibits the making of payday loans, including payday loans to Georgians through the internet.

"The law is clear that payday lending is illegal in Georgia," Olens said. "The defendants' utter disregard for the law of this state will not be tolerated. I have taken the necessary legal action to enforce the law and ensure that these unscrupulous lenders will no longer be able to exploit Georgia consumers."

Olens' office received multiple complaints regarding Western Sky's payday loans, including that Western Sky allegedly withdrew funds from consumers' bank accounts even after the consumers repaid the full amount of principal on the loan. Complaints against CashCall allege the company made harassing phone calls with abusive language and threats of legal action and wage garnishment.

Olens' office tried to resolve the issue out of court on multiple occasions. In May 2012, Western Sky agreed in a letter to stop making payday loans in Georgia and to add a disclaimer to its website. Since that time, however, Western Sky allegedly continued to make payday loans to Georgians with interest rates of up to 340 percent. Western Sky allegedly collaborated with CashCall to make and collect the loans in Georgia.

The lawsuit requests that the court prohibit the defendants from making payday loans in Georgia. The suit also seeks to declare all pending loans null and void, enjoin the defendants from further payment collection and require the defendants to pay attorney fees and civil penalties.

More News