- Associated Press - Tuesday, September 1, 2015

RALEIGH, N.C. (AP) - A judge says an out-of-state online lender and related businesses must stop offering and collecting on high-interest consumer loans to North Carolina residents.

Special Superior Court Judge Gregory McGuire issued a preliminary injunction against Western Sky Financial, CashCall and other related companies sought by Attorney General Roy Cooper’s office and the North Carolina Commissioner of Banks. The state sued the businesses in late 2013.

McGuire ruled last week there was no dispute the defendants were charging rates higher than North Carolina’s usury laws. The litigation accused Western Sky of offering loans with annual interest rates exceeding 300 percent.

South Dakota-based Western Sky said it’s not under North Carolina jurisdiction, as it claims to be an Indian tribal entity. The company says it stopped issuing North Carolina loans before the lawsuit.


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