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Firm tied to Western Sky barred from business in Minnesota

Filed Under: Business | Law
More on: cheyenne river sioux, internet, minnesota, payday loans, south dakota
     

A judge in Minnesota has barred a firm linked to Western Sky Financial from doing business in the state.

CashCall works with Western Sky to provide loans to consumers over the Internet. But the firm isn't licensed to do business in Minnesota, the judge said.

CashCall is temporary barred from "making, extending, arranging for, underwriting, funding, or purchasing any unsecured, personal loans to Minnesota borrowers," the judge said in her decision, The St. Paul Pioneer Press reported.

Western Sky is owned by Martin Webb, a member of the Cheyenne River Sioux Tribe of South Dakota. He says his business is governed by tribal law but the tribe is not officially connected to the firm.

Webb laid off most of his employees last week amid scrutiny from state and federal officials. He employed mainly tribal members on the reservation.

Get the Story:
Alleged 'rent-a-tribe' lender temporarily barred from new business in Minnesota (The St. Paul Pioneer Press 9/9)

Related Stories:
Column: Look for source of money behind online loan industry (9/9)
Indian loan firm lays off 94 employees amid mounting legal woes (09/04)
Editorial: Tighter regulation needed for online loan industry (08/30)
Blog: State actions take toll on Indian payday loan industry (08/29)


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