TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Pam Bondi has filed suit against several consumer finance companies that allegedly charged interest rates as high as 160 percent.
Western Sky Financial, CashCall, related companies and owner John Paul Reddam allegedly charged more than 6,000 Florida borrowers interest rates from 139.13 percent to 169 percent and annual percentage rates from 139.13 percent to 331.38 percent.
Western Sky also allegedly charged high origination fees for small dollar loans, resulting in higher annual percentage rates.
The interest rate charges are far higher than those allowed under Florida law. Bondi's suit seeks to cancel the allegedly illegal loans, require refunds for consumers, and ban the defendants from collecting on the loans or making any future illegal loans to Florida consumers.
"Florida law protects consumers from outrageous interest rates that leave borrowers continually paying interest without making progress in paying off their debt," Bondi said. "This lawsuit is intended to protect Florida's borrowers from these illegal interest rates."