How to deal with Western Sky and Cash Call Loans
So it's 11 PM, you see a commercial with a friendly looking guy telling you to call a number and have thousands put in your bank account by tomorrow. He tells you the money is "expensive", and let me tell you, he sure isn't lying. Western Sky's flagship loan product is 5,000 dollars. If you follow their payment plan, you will pay 40,000 dollars over the next 7 years (486 dollars per month for 84 months). If you have a loan out with Western Sky, do not fret. All Western Sky loans are sold to CashCall within a few days. CashCall is a lender who is licensed in the state of California only. If you are outside of California, you likely only owe the principal balance. Western Sky may tell you that you signed the laws of their tribe. Unfortunately, their tribe's laws do not matter outside of the reservation. To give you an extreme, yet easy to understand example, if their loan agreement stated that you are bound to the laws of their tribe, and the punishment in their tribe for nonpayment is beheading, you are obviously not bound to that in your state. If you are in a state where Payday Loans are illegal, then it's likely that Western Sky/Cash Call are not licensed in that state either. Listed here are the states in which PayDay Loans are illegal.
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.
You can check with your state's department of banking, consumer finance, consumer protection (the name varies by state) to see if CashCall/Western Sky are licensed in your state. In most states they are NOT licensed. What does this mean for you? It means technically, you owe them nothing as the loan is not enforceable off of their tribal reservation. However, it is not adviseable to simply forgo repaying your loan. Paying back the principal is the honorable thing to do. First, close your bank account down completely. If the account is in the negative, ask the bank manager to block all debits from the account until you can repay the overdraft. The manager will be more cooperative if you make it clear you do not wish to leave their bank, just create a new account. Now for dealing with CashCall/Western Sky, if you cannot afford to pay the principal, offer a settlement amount and ask them to charge a prepaid debit card every month to settle the account. If you are someone who took out the 5,000 dollar loan product (the flagship as I call it) and have been paying for more than 10 months (11 months would put you over the 5,000) you are entitled to a refund. Send them an email at the following address (email@example.com), requesting a refund for anything over the principal you repaid. I suggest upon receiving the refund check, you take it to Wal-Mart and have them cash it. I do not advise letting them have any ties to your new bank account by depositing the check at your bank. Wal-Mart will take a small fee but it is worth it, especially over those shady check cashing stores.