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August 01, 2013 04:46 PM

Michigan Targets SD Internet Lender For High Rates

Michigan regulators have cited a South Dakota-based Internet lender that they say is charging interest rates of more than 340 percent.

The state Department of Insurance and Financial Services said Thursday that it's given notice of Michigan's intention to issue a cease-and-desist order to Western Sky Financial. State officials say Western Sky is charging loans fees of as much as 70 percent of the loan amount, 14 times the legal limit.

The company has a September 24 hearing before any final order.

Western Sky is owned by a member of the Cheyenne River Sioux Tribe. Company spokesman Patrick Dorton says federal Indian law and tribal regulations govern Western Sky.

Dorton says the company gives customers "quick and easy financing ... with loan terms that are clear and upfront."

  • Business
  • Banking/Finance
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