New York Sues Lender Charging 355 Percent Interest

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

The company claims it doesn't have to follow federal or state laws, based on its supposed ties to a Native American tribe.

Western Sky Financial and its affiliates “scam New Yorkers out of millions of dollars,” New York Attorney General Eric Schneiderman has alleged.

The online lender charges interest rates “so high that a borrower could eventually shell out more than $4,900 to repay a $1,000 loan,” Reuters wrote after obtaining a copy of a lawsuit filed by the AG against the company. The company’s rates are as high as 355 percent and it has made 18,000 loans of up to nearly $10,000 since 2010, according to the lawsuit.

New York isn’t the first state to sue South Dakota-based Western Sky Financial, which claims ties to the Cheyenne River Sioux Tribe. The Better Business Bureau notes that Colorado and the Federal Trade Commission have also sued. BBB gives it an “F” rating based on 100 complaints against it, including 77 that the company did not respond to and seven more that are unresolved.

If the company’s Native American ties are valid, the company may have immunity from state and federal law. Its attorney claims it does, Reuters says. But New York says the company is just a cover — the lender in name only. Instead, companies called CashCall and WS Funding LLC offer and arrange the loans, the state says.

The Federal Trade Commission’s lawsuit is against a host of companies — including such creative names as Big $ky Cash, Great $ky Cash and GSky — all of which have ties to Martin Webb, the owner of Western Sky, the suit says.

The FTC suit claims one of the companies, Payday Financial, sues customers who fall behind on payments in the Cheyenne River Sioux Tribal Court, attempting to obtain a tribal court order to garnish their wages.

“The tribal court does not have jurisdiction over claims against people who do not belong to the Cheyenne River Sioux Tribe and who do not reside on the reservation or elsewhere in South Dakota,” the FTC says.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Costco Releases Dozens of New Deals

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,957 more deals!