Arkansas, Attorney General Dustin McDaniel plans to sue illegal online payday loan companies. These are payday loan companies who say they are affiliated with Native American Tribes. The reason for this claim is because they are trying to avoid legal action against them.
According to argusleader.com, McDaniel stated on Tuesday that he filed a lawsuit in Pulaski County Circuit Court against Western Sky Financial, Martin A. Webb and J. Paul Reddam, CashCall Inc. WS Funding. According to the lawsuit the defendants were charging high interest rates on loans. This violated Arkansas law.
Western Sky is based in South Dakota claimed to be a tribal entity. The Attorney General McDaniel says the company does have immunity and is not owned or operated by a tribe.
Other online payday loans companies like payday max and discount advances have shut down their sites.
