Borrowers on high-interest loans to share $9M in refunds

RALEIGH, N.C. (AP) — North Carolina residents who obtained very high-interest loans with some out-of-state lenders will share about $9 million in refunds.

Attorney General Roy Cooper announced Tuesday a court judgment involving Western Sky Financial, CashCall and related companies stemming from a 2013 lawsuit by Cooper and the state banking commissioner.

South Dakota-based Western Sky contended it was an affiliated with an American Indian tribe, so North Carolina’s usury laws didn’t apply to the firms. The state disagreed, and pointed out annual interest rates from about 90 percent to more than 340 percent were being charged.

The refunds will be disbursed based on what the lender would have been able to collect had loans originated at 16 percent interest. The companies also are barred from offering loans in the state.

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