Colonial Penn’s ‘Whole Life Insurance’
Life insurance company’s TV ad doesn’t tell the whole story.
New York State’s attorney general filed suit this week against Western Sky Financial, a payday lender claiming connections to American Indian tribes. According to the New York Times, the suit alleges that
Western Sky and its affiliates have made at least 17,970 costly loans to New York residents since 2010. The interest and fees alone, the lawsuit says, amount to nearly $185 million. The lender, Mr. Schneiderman said in the lawsuit, “preys upon New York consumers facing financial hardships with limited options.”
Western Sky was fined earlier this year by the Oregon’s Department of Consumer and Business Services for pitching its 342% APR loans with radio and TV ads. Colorado’s attorney general also sued Western Sky in 2011.
Consumers should stay away from any lender pitching short-term loans with sky-high interest rates, particularly the lenders being sued by multiple states. For more on payday loans, click here.
Our Ad Alerts are not just about false and deceptive marketing issues, but may also be about ads that, although not necessarily deceptive, should be viewed with caution. Ad Alerts can also be about single issues and may not include a comprehensive list of all marketing issues relating to the brand discussed.
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