New Yorkers can now file claims for more than $20 million inrefunds for illegal interest they were charged on loans fromWestern Sky Financial and CashCall, the state's attorneygeneral said last week.

California-based CashCall is a loan servicer that worked withWestern Sky, a South Dakota-based online lender that claimedimmunity from state laws because it was based on an Indianreservation and owned by a member of the Cheyenne River SiouxTribe.

The funds are from a settlement that the office of AttorneyGeneral Eric Schneiderman reached after it sued Western SkyFinancial, Cash Call Inc., WS Funding and their owners.

Schneiderman said borrowers who got a loan from Western Skywhile a resident of New York and who paid Western Sky, Cash Call oraffiliated collectors more than the loan itself plus the legalinterest of 16% are eligible for refunds of the illegal interestpaid.

“If consumers make claims, there is more than $20 million thatcould be distributed,” Schneiderman's statement said, adding thatmany borrowers already have had their loans and credit historiesmodified and that the companies have paid $1.5 million in penaltiesto the state.

“Thousands of New Yorkers who were the victims of exorbitant andillegal interest rates can receive meaningful relief through oursettlement fund,” Schneiderman said. He said many of the borrowerscould receive funds exceeding $1,000.

The loans, acquired by Western Sky and serviced by CashCall,ranged from $850 to $10,000 with upfront fees, extensive repaymentterms and yearly interest rates ranging from nearly 90% to 343%,the CFPB has said. That federal agency also sued CashCall, saying last December the company debitedcustomer accounts for money they did not owe.