ATLANTA (Legal Newsline) — CashCall
Inc. and related entity Western Sky Financial Inc. have agreed to suspend collections on roughly $6.5 million in payday loans made to consumers in Georgia between 2009 and 2013.
This comes after a Georgia Supreme Court ruling that the state’s Payday Lending Act governs Internet
lenders, like CashCall and Western Sky Financial. This allowed the state to
move forward in the trial court.
“This is a victory for
Georgia’s consumers,” state Attorney General Chris Carr said. “The Supreme Court’s ruling makes it clear
that out-of-state lenders cannot use the Internet to circumvent Georgia
law. My office will continue to vigorously pursue predatory lenders who
target Georgia consumers with illegal loan products.”
Assistant attorneys general
Charlene Swartz, Monica Sullivan, Andrew Chesser, and the Department of Law’s counsel for legal policy Timothy Butler handled the case.
Western Sky consumers with
questions about the ruling have been urged to call the Department of Law’s
Consumer Protection Unit.