An Internet lender that was owned by a member of the Cheyenne River Sioux Tribe of South Dakota has reached a settlement with the state of Connecticut.

Martin Webb, the owner of Western Sky Financial, and CashCall, an affiliated business, agreed to pay $400,000 in fines. They will also repay excess interest to consumers who took about $5 million in loans when the company was still in operation.

"CashCall took advantage of Connecticut residents by charging wildly exorbitant interest rates on short-term loans, and the borrowers who fell victim to these illegal practices now have an opportunity to get back the money they overpaid,” Connecticut Department of Banking Commissioner Howard F. Pitkin said in a press release. “Borrowers won’t have to go it alone; the Department of Banking stands ready to help them make their claim.”

Webb was forced to shut down his operations last year after facing legal challenges from several states and the federal government. His business was not affiliated with his tribe.

Get the Story:
State Settles With Companies Charging 'Exorbitant' Interest Rates (The Hartford Courant 4/10)
State collects $5.4M for lending violations (The New London Day 4/10)