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Judge rejects jurisdictional argument, demand to throw suit over Western Sky loan’s 89 interest rate that is percent

An payday that is online provider dealing with litigation over allegations he attempted to utilize their standing as an associate of the Sioux Indian tribe to tailor loan contract terms to skirt lending regulations will have to continue steadily to defend himself against another lawsuit brought by a client whom alleges he had been charged unlawful interest rates.

U.S. District Judge Robert W. Gettleman earlier in the day this rejected a request from Martin A. Webb, owner and operator of payday loan companies Western Sky Financial LLC and CashCall Inc., to dismiss an action Illinois resident Ben Scherr brought month.

Scherr sued over claims Webb’s businesses released him financing interest that is carrying so high –89 % — they went afoul of Illinois usury legislation.

In looking for the suit’s dismissal, Webb argued it failed to state a legitimate claim and the court lacked jurisdiction throughout the matter considering that the loan ended up being granted by their business inside the Cheyenne River Sioux Reservation in Southern Dakota, making Illinois law inapplicable beneath the Dormant Commerce Clause doctrine.