DIFS Takes Action to Stop Western Sky's Unlicensed Activity in Michigan

FOR IMMEDIATE RELEASE
August 1, 2013
Media Contact: Caleb Buhs at 517-373-2380
Consumer Hotline: 877-999-6442
http://twitter.com/midifs

LANSING - Internet lender Western Sky Financial, LLC has been put on notice that the Michigan Department of Insurance and Financial Services (DIFS) considers its lending practices to be illegal and harmful to Michigan consumers.  The department has issued a Notice of Intention to Issue a Cease and Desist Order to Western Sky Financial, LLC; an internet lending company doing business in Michigan.

A DIFS investigation found that Western Sky is not properly licensed to make loans in Michigan and is charging interest rates of more than 340%, far above the statutory ceiling. In addition, loan fees of as much as 70% of the loan amount are being charged, which is 14 times the legal limit. For example, a consumer borrowing $2,600 from Western Sky could pay more than $14,000 in principal and interest over the life of the loan.

“DIFS advises consumers to only conduct business with entities that are properly licensed,” said DIFS Director Kevin Clinton. “Through our investigation, it became clear this company is not complying with state laws that were put in place to protect consumers and is taking advantage of Michigan residents.”

Michigan consumers are encouraged to contact DIFS toll free at 877-999-6442 or www.michigan.gov/difs to find out if a lender is licensed to do business in the state. 

Under the Regulatory Loan Act the company is entitled to a formal hearing, in accordance with the provisions of the Michigan Administrative Procedures Act of 1969, before the issuance of a Final Order to Cease and Desist. The hearing is scheduled to be held before an administrative law judge on September 24, 2013, at 9 a.m., subject to change.