New York Attorney General and Western Sky Settlement
The Office of the Attorney General of the State of New York has reached an agreement to resolve all outstanding issues in a lawsuit titled the People of the State of New York v. Western Sky Financial, LLC; Martin A. Webb; CashCall, Inc., WS Funding LLC and J. Paul Reddam (“the Respondents”). In this case the Attorney General asserted that Respondents made, serviced and collected high-interest, personal loans to consumers in the State of New York at interest rates that exceeded the maximum rate allowed under New York State law. Western Sky Financial offered and made the loans; WS Funding, a subsidiary of CashCall, bought the loans from Western Sky Financial; and CashCall, acting as the servicer of the loans, collected the interest, fees, and principal from the borrowers. The Respondents have not admitted or denied liability for any of the issues presented in the lawsuit.
In certain instances, the Settlement Agreement requires refunds and/or modification of existing loans to individuals who entered into loan agreements with the Respondents while a New York State resident and paid interest rates that exceeded the maximum of 16% allowed under New York State law. Those eligible under the terms of the Settlement should also receive a credit history adjustment. The agreement also establishes a Settlement Fund from which refund payments will be made to eligible borrowers who file a valid claim. Kenneth R. Feinberg of Feinberg Rozen, LLP will serve as the Settlement Fund Administrator.
What are the Terms of the Settlement?
Under the settlement, eligible borrowers who obtained a loan from Western Sky Financial, LLC while a resident of the State of New York may be entitled to a refund. In addition, a borrower who obtained a loan from Western Sky Financial, LLC while a resident of the State of New York or who was a resident of the State of New York on March 5, 2014 may have already received a loan modification. Those eligible under the terms of the Settlement should receive a credit history adjustment. Please review the detailed Settlement Notice to determine if you are eligible.
Additional Settlement Relief
The Respondents are permanently prohibited from specific practices that violate New York laws and will also pay a penalty of $1.5 million to the New York Attorney General’s Office.
Who Is Eligible to File a Claim Under the Settlement?
You may be eligible to receive a refund from the Settlement Fund if you: received a loan from Western Sky while a resident of the State of New York and paid Western Sky, CashCall, or an entity collecting on their behalf, more than you received from the loan plus the calculated amount of the legal interest rate of 16% allowable under New York State law. If eligible, the amount of your refund if you file a valid claim would be equal to the difference between the total of your payments made to Western Sky, CashCall, or an entity collecting on their behalf (not including payments made to unrelated third party debt collectors) and the repayment amount calculated using the legal interest rate of 16%.
How Can I Obtain More Information?
This website will be updated as additional information becomes available. Please check back periodically for important updates.
Toll Free Number 1-877-302-2525
Available Monday - Friday 9:00AM - 5:00PM EDT.
Western Sky Settlement Fund Administrator
P.O. Box 10046
Dublin, OH 43017-6646