Attorney General John Suthers’ office has filed a lawsuit against Western Sky Financial, a South Dakota-based online lender, and its principal, Martin A. Webb, for making unlicensed, high-interest loans to Colorado consumers.
Filed in Denver District Court, the lawsuits states that the company made more than 200 loans to Colorado consumers since at least March 2010, while it was not licensed with the state.
The loans ranged in value from $400 to $2,600. Terms of the loans ranged from seven months to 36 months, and annual percentage rates ranged from 140 percent to 300 percent.
Lenders making subprime loans must be licensed with the Attorney General’s office, according to Colorado’s Uniform Consumer Credit Code. Because Western Sky made loans with interest rates higher than 12 percent, it must be licensed.
People with complaints or concerns about a lender may contact the Attorney General’s Uniform Consumer Credit Code division at (303) 866-4494 or online.