LANSING (WKZO-AM) — The Attorney General’s Office says around 6,500 Michiganders have filed claims against two companies who paid out nearly 16,000 illegal loans between 2010 and 2013.
Refund-eligible borrowers will split $2.2 million that was refunded to the state by South Dakota-based Western Sky Financial and California-based CashCall. Attorney General Bill Schutte said the checks should reaching Michigan mailboxes by next month.
According to terms of the May settlement, both companies will also cancel around $16 million in debt and reduce loan balances by another $7 million.
Michigan Department of Insurance and Financial Services Director Patrick McPharlin said both lenders were unlicensed in Michigan and charged interest rates well above the state-mandated maximum of seven percent.
Some interest rates topped out at 169 percent, and some APRs eclipsed 350 percent.
– Anthony Pollreisz
