Online lenders in five states have been charged with makingloans without a license and offering interest rates that violatestate limits.

The lenders are located in Colorado, Florida, Maryland, Missouriand Washington, the Northwest Credit Union Association reported.

The five online lenders are Western Sky Financial LLC, Payday FinancialLLC, d/b/a Big Sky Cash and Lakota Cash, Great Sky Finance LLC,d/b/a Great Sky Cash, Green Billow LLC, d/b/a Four Seasons Cash,and Red Stone Financial LLC, d/b/a Red Stone Cash.

The unlicensed lenders are all owned and operated by Martin Webbfrom the Cheyenne River Sioux Tribe Indian Reservation in SouthDakota. He is operating them as an individual tribal member ratherthan through the Cheyenne River Sioux Tribe or any of its politicalsubdivisions, according to the Northwest Credit UnionAssociation.

Thousands of loans were made by the lenders to Washington stateresidents online with rates that ranged between 89.68% and 1,825%,which are well above the maximum rate of interest of 12% permittedin the state, the NWCUA said.

The Washington Department of Financial Institutions said afterreceiving at least 22 complaints against the lenders, it issued aconsumer alert in August 2011 warning consumers that Western SkyFinancial and Lakota Cash were not licensed to make loans inWashington.

The named lenders have the right to request an administrativehearing on the charges, according to the NWCUA. While the chargesare not an order that violations of the Consumer Loan Act haveoccurred, the law gives the DFI the authority to files charges ifthe regulator believes there are violations.