The state of Georgia has filed suit against a pair of companies to force them to stop offering payday loans here, Attorney General Sam Olens announced Monday.
Olens said the suit, against Martin A. Webb, Western Sky Financial and CashCall, was filed Friday. Olens says the companies make illegal payday loans in Georgia through their websites. Payday loans are illegal under state law.
“The defendants’ utter disregard for the law of this state will not be tolerated,” Olens said. “I have taken the necessary legal action to enforce the law and ensure that these unscrupulous lenders will no longer be able to exploit Georgia consumers.”
The defendants are not licensed to loan money in Georgia yet continue to offer high-interest payday loans in the state. Olens said the loans carry “crushing” interests rates of up to 340 percent.
The suit comes after Western Sky originally agreed in May 2012 to stop offering loans in Georgia. Olens said the company has continued to solicit customers in Georgia and stopped communicating with his office.
Olens said Western Sky Financial, which is owned by Webb, funds the loans while CashCall services the loans and manages collection of payment.
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