Just want to report on experiences I had with Cash Call through Western Sky.
I had a family member take out a loan through Western Sky for $5,000 over a year ago, and I only found out about it after they started having trouble making the payments. Why they chose to do this is beyond me, but the truth is that there are a lot of people in this country who make very poor financial decisions. This is why we have usury laws to protect people from falling into contracts that charge outrageous amounts. Cash Call uses two methods to circumvent these laws, and one of those ways is through Western Sky. Keep in mind that these companies are going out of their way to find loopholes to laws that are set up to protect people from EXACTLY these kinds of companies.
Moving on, after reading the contract and doing some due diligence (which included speaking to reps from both Western Sky and Cash Call), I was able to piece together the pieces of this puzzle.
First of all, the Western Sky loans can charge so much because they're a product offered through a Native American reservation, and so can circumvent U.S. Law. They can advertise this product the same as they can advertise Indian Casinos even though gambling may be illegal in the state that they're showing the commercial on. This is verified when you read the contract, which states the following:
"All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit."
This makes it very clear that what you're entering into is a form of debt that originates within the Indian Reservation, and the contract only legally exists within the Reservation. This is what makes the product "legal, " which is what any rep will tell you when you question it. Technically, yes, the loan is "legal" but they don't mention that it's ONLY legal on the reservation.in the United States, it's void.
Now what happens automatically is that Western Sky sells all their loans within a few days to Cash Call, and CC is the company that tries to collect. This is legal also, but you have to keep in mind that CC is still bound to the original contract, which states that the contract is subject only to the jurisdiction of the Tribal Court. What this means is that they can not sue you in an American civil court to recover on this loan. That would be like an Indian Casino suing you for gambling debt in a state where Gambling is illegal... It would be thrown out of court.in fact, I can't find a SINGLE case on the internet where CC sued someone over a Western Sky loan. It doesn't happen because the contract states they can only sue in Tribal Court.
Likewise, they CAN'T garnish your wages. They might threaten this but they can only get a court order from the Tribal Court and that's worthless in the United States. So they can't sue, they can't garnish wages, and they also can't affect your credit score. They might post something to your report, but once you dispute it the credit agencies will remove it because it is not valid debt. American credit agencies don't bother themselves with illegal debt, and they don't bother themselves with debt that originates from outside the country!
Basically all they can do is harass you to try and get you to give them money. However, they are legally required to stop calling once you have requested that they do so, and especially after you have sent them a request for a letter of debt validation and then a cease and desist. There is literally NOTHING that Cash Call can do to harm you when it comes to Western Sky loans.
The second way that CC circumvents usury laws is by underwriting loans through a bank in Delaware. A loophole in usury laws allows people to be charged rates that are allowed by law in the originating state, and Delaware has very lax laws in this regard so CC can charge 97% APR no matter the laws in your home state. HOWEVER, CC is only licensed as a lender in California, Delaware, and three other states. If you don't live in one of those states then your loan was also illegal and Cash Call can not actually collect on it by force. Note this is only in regard to their high APR unsecured installment loans, and not in regard to their morgage or other products.
Just hope this information will help people get their lives back in order and keep them from filing bankruptcy due to a disgusting company that is all a bluff. They really can't do anything to you... This information was confirmed with a Cash Call Supervisor and a Western Sky legal representative.
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