FOR IMMEDIATE RELEASE FROM
THE WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

Contact
Lyn Peters, Director of Communications
PH (360) 349-8501 or CommunicationDir@dfi.wa.gov

01/19/2016
Refund checks are being sent to more than 3,000 Washington borrowers - with refunds totaling $1.9 million; additional Washington borrowers had their principal balances written off

OLYMPIA – The Consumer Services Division of the Washington State Department of Financial Institutions (DFI) announced that more than 3,000 refund checks stemming from predatory, high interest loans are going out to Washington borrowers today.

In October 2015, the DFI, Western Sky Financial, CashCall, Inc. and their owners and affiliates entered into a settlement involving two cases that had been on-going for more than four years. Under the terms of the settlement, the companies agreed to provide refunds of excessive interest payments to thousands of Washington borrowers and eliminate the principal balances for additional Washington borrowers. The settlement also provides additional consumer relief by requiring the companies to contact the credit bureaus to remove any adverse credit reporting relating to these loans.

“These refunds have been a long time coming but should be helpful relief for thousands of Washington borrowers,” DFI Division of Consumer Services Director Charles Clark said.

The Statements of Charges issued against CashCall and Western Sky alleged that the companies engaged in unfair and deceptive acts and violated usury laws and other consumer protection laws. According to the Statements of Charges, interest rates on these loans ranged from 89 percent to 169 percent. Many of the borrowers reported that they did not understand the loans terms or how much the loan would really cost.

“With these outrageously high interest terms, these companies preyed upon Washington borrowers,” DFI Director Scott Jarvis said. “I am happy to report that the companies are being held accountable for their illegal and intolerable lending activities and that Washington borrowers are now getting some much-deserved money back.”

Letters were mailed to refund eligible borrowers in December 2015 notifying them they would be receiving a refund and the refund would be sent from the fund administrator, A.B. Data, Ltd. Credit history repair and principal balance write offs were done automatically, requiring no action from the affected Washington borrowers.

In addition to making refunds and charging off principal balances, the companies also agreed to cease and desist from lending in Washington. CashCall’s Washington State consumer loan license was revoked. Western Sky has never had a license to provide consumer loans in Washington.

To verify whether a company offering consumer or residential loans is licensed by DFI, go to www.dfi.wa.gov and click on the “Verify License” link.