LINCOLN, Neb. (Legal Newsline) – Nebraska Attorney General Doug Peterson and Director of the Department of Banking and Finance Mark Quandahl announced a settlement that mandates that unlicensed internet loan companies pay restitution, forgive current debts, notify credit reporting agencies for credit history repair and stop all lending in the state of Nebraska.
“Nebraskans need to be protected from unscrupulous lending practices,” Peterson said. “This settlement will provide relief for many of our hard-working citizens who were taken advantage of by a predatory online lender.”
The state had taken action against CashCall Inc.; Delbert Services Corp.; WS Funding LLC and its owner J. Paul Reddam; and Western Sky Financial LLC, and its owner Martin A. Webb. It alleged that Western Sky worked with CashCall as an unlicensed lender, providing more than 2,400 Nebraskans with loans that came with 89 to 342 percent annual interest rates.
The companies and their owners will be forced to start a $950,000 restitution fund to repay Nebraskans victimized by the alleged scheme. They will also pay $150,000 to the state.
“We are proud of this outcome that will help the Department of Banking and Finance fulfill its mission of protecting and maintaining the public confidence in the state regulated financial service industries,” Quandal said.