Georgia consumers who are eligible for refunds from a South Dakota-based payday lender are being notified by mail, Attorney General Chris Carr announced Tuesday.
Western Sky Financial’s settlement administrator, Dahl Administration, recently sent 10,806 “notice and claim form” packets regarding the deal.
The company will pay Georgians $23.5 million in restitution and forgive all outstanding loans in the state.
Some consumers could receive more than $13,000 in restitution, Carr said in the release.
The settlement was announced in early February. Carr's predecessor, Sam Olens, sued Western Sky Financial in 2013 after the company reneged on an agreement to stop peddling its wares in Georgia.
The company, which is owned by a member of the Cheyenne River Sioux Tribe, argued that it had sovereign immunity from Georgia lending laws. It also argued that a Georgia state law prohibiting payday lending didn't apply to out-of-state lenders, The Atlanta Journal-Constitution previously reported.
Payday lenders make small short-term loans that carry high fees and interest rates, which critics say make them difficult for borrowers to pay back.
In order to receive refunds, consumers should submit forms by May 15. Those who believe they are eligible and do not receive a form "within the next ten days" can contact Dahl Administration at info@GAWesternSkySettlement.com or 1-888-865-9788, according to the March 28 notice.
More details are posted at www.GAWesternSkySettlement.com.
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