Minnesota Reaches $4.5 Million Payment with Unlicensed Payday Lender

Officials state pay day loan company CashCall attempted to evade guidelines by improperly invoking tribal sovereign immunity.

By William Bornhoft , Patch Staff

The Minnesota Commerce Department and Attorney General has already reached a sweeping $4.5 million settlement with a California-based internet payday lending business that victimized 1000s of Minnesotans with unlawful, high-interest loans.

The settlement is by using CashCall Inc., its companies that are affiliated owner J. Paul Reddam.

“Our company is focused on protecting customers and breaking down on unlawful, misleading financing techniques that victimize susceptible Minnesotans.”

CashCall financed high-interest, quick-approval payday advances to customers online, according up to a news launch.

Officials say CashCall attempted to evade state customer defenses by improperly invoking tribal sovereign resistance and working via a front business, Western Sky Financial, an organization made up of ownership by a person who had been a part regarding the Cheyenne River Sioux Tribe in Southern Dakota. Read more