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Infolawyer, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 57695
Experience:  Licensed attorney helping individuals and businesses.
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I took out a 10K loan with western sky last summer, so that

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I took out a 10K loan with western sky last summer, so that i could make payroll and unfortunately the business failed but I have been dutifully paying it. After some research on the web I found that this might be considered an illegal loan and my only obligation would be to pay the principle, of which I am within $400 of having paid
Hello and thank you for the question. What is the interest rate on the loan? why do you think it is illegal?
Customer: replied 4 years ago.

the interest rate is 89.9% I was just reading about the lawsuits brought by NY, WA, MN, and GA attorneys general and wondered if this might be the case. Obviously I realize I don't live in those states but since the interest rate far exceeds the NC state usury rate I wondered if this loan might be considered illegal in NC. I also understand that the terms of this loan state that it is governed under the tribal laws where the business is located etc etc, but is any of this really enforceable in NC.

That interest rate is usurious. Courts strike down the interest and in many instances punish the lender and strike the principal of the loan too ordering the lender to repay payments made too. You may pursue by civil lawsuit and by attorney general complaint.
You may also have a local lawyer pursue on commission fee basis, for which is a good resource.
Good luck and enjoy the weekend.
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