Online loans from Western Sky Financial and Cash Call
My friend David in the State of Florida was going through some serious hardship. So serious that 3 of his vehicles were repossessed and his electricity was turned off. The vehicles were impounded and the cost to take them out was a total of $12,000.00. His wife went into a very depressed time and was in bed for almost 2 weeks straight not wanting to eat because of the situation. He didn't want to see his family go through this situation and saw an advertisement on TV from a company called Western Sky.
They offered him $10,000.00 cash advance with a payment plan of $743.49 a month @ 89% interest rate. David did not have any financial concept or understanding as to what this meant. He was under the impression that his payment of $743.49 was going towards the money he owed. After 3 months of making these payments his wife saw the statement and realized that the balance on the account was increasing tremendously instead of decreasing. She flipped and started to cry because she knew he had gotten himself into a much deeper whole instead of getting them out of hardship. She called me and ask for help.
I informed that she should try investigating the laws in Florida regarding cash-advances because there should a cap on the interest they charging.. I know for a fact that hard-money can only go up as 18% interest in most states.. but I am not familiar with the laws in Florida regarding revolving accounts or cash advances.
When Western Sky contracted David to give him the loan, another 3rd party company by name of Cashcall based out of California is the one that who is actually withdrawing the money out of his account every month. Why do they have two companies I'm not sure. So I dug a little deeper and found that Cashcall is a registered company in the State of California (C2210310 01/28/2001 ACTIVE CASHCALL, INC. NATIONAL REGISTERED AGENTS, INC) but Western Sky is not.
At this point we don't know what to do to protect David's rights as a consumer or who to go to get help. He does intend to pay the money back, but he wants a fair and decent amount to go towards his principal. I think at this point he's getting ripped off. Can you please help David?
How do we act on protecting David's consumer rights and how do we help him avoid getting ripped off?
—Claudia Torres
I am sorry to hear of your friend’s predicament with Western Sky Financial and CashCall. Going further into debt with what most of us would consider usurious loans, like those offered over the internet, offer a temporary measure to fill a cash gap, but are more akin to digging a deeper financial hole. But I get the reasons people will treat the loans as a life line.
I have followed some of the different developments with payday lending, offshore online lending, and so called tribal lenders. I have not kept up with recent events in this area of the debt markets. Your question gave me an opportunity to read up on a good 6 months of developments in the courts and elsewhere.
Western Sky Financial Operates in South Dakota
Western Sky Financial appears to be operating from the Cheyenne River reservation in South Dakota. The same people operating Western Sky appear to have ties to several other online loan operations: Payday Financial Big Sky Cash Lakota Cash Great Sky Finance Four Seasons Cash Red Stone Financial.
Why is their location of any importance? The amount and rate of interest Western Sky Financial, and other payday and internet loans charge, are illegal in many states. The argument Western Sky Financial is making in courts around the country (in order to defend court actions brought by state, federal, and individuals), is that they are tribal lenders. Having caught up on some reading as a result of your question, that argument does not appear to be going to well.
Taking out online loans from Western Sky, or any of their other entities, does result in getting money. Anyone taking out this kind of usurious loan is likely doing so because:
- Your credit score is too low to qualify for traditional loans.
- You are maxed out on credit cards.
- Your debt load is too high to get additional credit – even with a good credit score.
- Like your friend Dave, these loans are only considered when there are immediate hardships and expenses to cover.
My point is, you need the money at the time, found a way to get the money to fill the immediate cash void, and use the loan to get by. As screwy as this is to point out when talking about an online loan that will likely be found to be illegal in many instances, Dave got the money and used it to get by. He may regret the decision later, and learn that there were problems with the loan being made to him as a Florida resident, but what to do about the fact that he got something from Western Sky Financial?
How to Deal with Illegal Online Loans
Some options for Dave to consider when compared to how others have talked about handling repaying, or not repaying, Western Sky Financial would include:
- Closing your checking account payments are being auto drafted from.
- Making payments to Western Sky Financial, but only in the amount you can afford, and up to the principal of the loan.
- Contacting the Florida financial regulation office where you should learn that Western Sky Financial is not licensed in Florida, and file a complaint they can investigate: https://www.flofr.com/PressReleaseDetail.aspx?id=4228
There is an active lawsuit filed against Western Sky Financial by the state of Florida.
If your friend stops making payments to Western Sky Financial and closes the bank account any payments may have been being drawn from, he will need to be prepared for some blow back from either Western Sky Financial, or CashCall, or both. Collection calls and letters are to be expected. It is clear from what you shared that he cannot make the payments, and to do so even if he could, would be paying usurious interest to what is likely an illegal lender in Florida.
If it were me in Dave’s shoes, and I had the money in my budget to pay back something toward the loan every month, I would take a businesslike approach and contact Cash Call and Western Sky to let them know I will only be paying xxx.xx amount each month until the principal is paid. If I did not have the money in my budget due to further setbacks, I would wait and see if things turned around financially and then make an effort to pay the principal, or settle with CashCall or Western Sky or less. If finances remain tough, it may be time for Dave to speak with a bankruptcy attorney. If Dave is at a place where vehicles are being impounded, and power cut off, it may be time to consider his options with bankruptcy now, rather than later.
Anyone with questions about Western Sky Financial, Cash Call, or similar type of online loans and payments, is welcome to post in the comments below for feedback.
1/10/14 Updates to this reader question can be found throughout the comments below. A comment posted by Carol contains a link to more detailed information for Florida residents dealing with Delbert Services, Cash Call, and Western Sky loans. I replaced the previous link to the Florida action against these companies with Carol’s.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
There are updates to the CFPB case against Cash Call and Western Sky here: https://pubcit.typepad.com/clpblog/2022/05/cfpb-wins-a-round-against-cashcall.html
This all suggests to me that, at some point, there will be some form of cash settlement distribution to those that were harmed.
I got a phone call today from a company calling themselves Akerman-Walker Mediation. They claim that they have my debt and that if i do not pay them, even in payment form the $850 (which oddly enough is the loan amount without interest or percentages) that they will pass the documentation off to my county court.
I borrowed money from them back in 2011. I am from Ohio. When i received the call today, the woman informed me that they had on file that i had borrowed the money in 2013, but i didn’t, the money was borrowed in 2011 because it was right before I went full time at my job.
I had a collection agency contact me by the name of Apex Solutions located in new York City in 2014, over the course of 2 years I paid $150 a month to them, yet this woman I talked to today claimed that not a dime was paid an that Apex didn’t file anything.
What can be done in my case? since I’m in Ohio I technically don’t fall under the states that don’t allow it. But I am trying to find out what route i can go with this since I had already paid over $2000 to one company where it was supposedly going to the debt.
I would send them a written request for validation of debt. Use the correct letter from the CFPB debt collection resource page. Post an update when they respond to the letter you send them and lets go from there.
I got a personal loan from Western sky about for years ago and didn’t pay them and about six months ago someone that said that they bought Western sky out demanded their money from them I don’t remember their name but I’m a hundred percent disabled veteran and can not afford to pay who ever they are I am filling bankruptcy in a week and was wondering if you knew who bought them out and how I can get in touch with them
Many of the Western Sky loans are simply not collectable now due to regulatory action. I am concerned that you are being contacted by a fake debt collector. These scams get a copy of your credit reports, or hack a file, and can come off as the real deal.
I have no,clue what’s going on.. In in Virginia and called cash call to make my pyt and would not take it. Said account frozen and cannot accept payments .. Help.. They couldn’t give me any information period.. Original loan was with western sky then Delbert then cash call. Told me to call,attorney General of Virginia.. Really
Call your AG to double check on everything. They are not able to accept payments, so this will likely not impact your credit reports.
I too ran into that starting in October. First CashCall reduced my old Western Sky interest rate to 8%, then after 1 payment they stopped accepting my payment. This past week I finally got a discharge letter from CashCall. The letter states that the loan has been “cancelled, discharged, released and forgiven”, and that I was no longer required to make payments on the loan. I live in Oklahoma, so I am guessing they finally gave up on dealing with the Western Sky mess.
Sad thing I was within 10 months of paying the damn thing off, but hey, I’ll take it.
I’ve Heard 0f Western Sky Loans, When I Lived In South Florida. I Now Reside Inn Columbus, Georgia. Payday Loans And Companies Like Western Sky Which Is Classified As A Tribal Loan Company Are Illegal In Georgia. I Got Ripped From An 0nline SCAM Company 8 Monts Ago. Luckily The Navu Federal Credit.Union Froze My Account And Prevented Any Transfer 0f Funding From My Account. If You Have The Time Contact The FTC Federal Trade Commission And Also The Bureau 0f Internet Crimes Fraud Division And File A Complaint. They Will Issue You A Caae Number And Will Investigate. If Your A Senior Citizen And Were Treated 0R SCAMMED They Will Expedite The Proceedings More Quickly. ICB Takes A Very Dim View 0n SCAM Companies.
Is Indiana going thru the same lawsuit? I also had a loan with Cash Call that was near being paid in full but noticed that they last several payments were not deducted from my account and when I go to their website it states Paid In Full.
HI I have not gotten a loan with Western Sky but I did borrow 500 from West River Cash. I live in Georgia and have a Georgia address. My license is still Mississippi. Payday loans are illegal in Georgia and so I was wondering would I be considered a Georgia Resident. I am registered to vote in Georgia and gave them a Georgia address when I applied for the loan but with my license still being Mississippi I did not know if this would make me a Mississippi resident still.
Talk to an experienced consumer law attorney in Georgia about your options.
After 7 years or more, my credit report has not collections or past dues, all the sudden I received a collection bill. Will this be added again to my credit even if I dont answer or call them? Also, years ago I left a credit card in bad terms. Now, the offered credit and I was approved, will they try to collect the money I owed them long time ago, or that debt was already charged off?
Who is the bank that reissued you a credit card?
Who is the collection bill from that you refer to? Can you confirm it has been more than 7 years since you last paid on the account that particular collection agency is trying to get you to pay?
Thank you for replying.
The credit card company is Discover, I was approved for a new line of credit just 1 week ago.
The collection bill came from Convergent, it looks like they have an account from another collection agency as well as “the original creditor” as Wells Fargo. I have not done anything in 7 years with my credit as well as I have not paid anybody in the last 7 years. my credit history as of right now shows not collections no past dues.
I would not worry about the new account, and I would probably request the debt collector on the old account cease communicating with me if the debt at issue is passed the point where it can appear on my credit reports, and passed the point where I can be legitimately sued in my state. Check out this video about zombie debt, which is what these old collection accounts likely are now.
Michael, Thank you for replying to my questions, this has been of lots of help!
I honestly did not think I was going to get a reply but this site is has been a great resource tool.
Is Virginia going through the same lawsuit? I live in VA and I noticed my final payment on my Western Sky/Cash Call loan had not been taken out of my checking account. I called Cash Call and was told there were issues between them and VA and as soon as this was finalized I would be notified. I was told that no penalties or interest would be charged to my account. I hope this is a true statement. I did try to make the final payment and was told by the representative that I could not since there were issues going on.
There is, and you should be able to rely on nothing negative coming from any of it at this point.
Where did you find the info on the court case?
Check with the Virginia AG directly.
I viewed my loan on line today and it shows where my last payment owed — statement shows “LOAN PAYMENT MADE IN FULL”. I never made that last payment, but somehow it’s gone.
Waiting on a response to a question about Western Sky/Cash Call/Delbert is there a lawsuit filed or are they tied up in court. they have not taken this months payment out. Is this lawsuit for everyone that have a loan with them
There is a federal lawsuit that is winding down to the effect that loan payments are ceasing. There are also state actions that could be winding down. Where do you live?
I got the loan from Western Sky about 4 years ago while going through some rough financial time I made several payments but was not able to keep it up. To make a long story short I have moved and kept wondering why no one is contacting me about this loan, no collection calls or mail and so last week I get a call from a BLOCKED number and a message that this person/agency will be coming to my job and my home to serve me with court papers as well as possibly arresting me. Not only did they leave that message on my phone they also called my fathers phone ( I have no idea how they got it) and told him that I wrote a bad check to the bank and they will be coming to arrest me on my job.
When I called them back I told them that this is the first I hear of this collection activity and that I’m not refusing to pay but not able to pay close to $500 / mo as they are asking me. Another person got on the phone and said that if I can’t make those payments they will continue with law suit against me.
So I started researching and came across this page. If anyone has any update on the Florida case I would really appreciate the info. From what I found its not progressing.
Be sure to read this article about scam debt collectors, which is who you are being contacted by. It may help you to watch this video too:
Thank you so much. I now know for sure that they are scammers because they keep communicating with my father who does not have my permission to speak to them at all and keep giving him all of my information as well as my communication with them. I am assuming they’re trying to get him to pay this since I told them I couldn’t afford the amount of payment they want right now.
I live in NC and I also received an email speaking about a settlement package from western sky(8/12/16).i haven’t made a payment in over a year and not received the usual collection calls from cash call.i will check with nc attorney general office,1st thing Monday.Wow I am over joyed ,because my internet rate was 89 percent. I wish all you guys success.
I am in NC. I know the AG here filed a lawsuit againt western sky/Cashcall. . But haven’t heard any updates on the status of the case
Have you proactively reached out to the NC AG office lately? I have always found them to be responsive.
I live in NC and I received an email today stating that they were sending me a settlement eligibility packet.
I am in NC as well. I received and email about the case and settlement but is this true or a scam?
I also received this email but deleted it in error. Was there a contact number in the email and if so, do you mind posting it?
Thanks,
Kim
I have had my loan with Western Sky for a few years and Delbert Financial has been doing the collections for awhile. My payments have been automatically debited from my checking account. The June payment was not taken, so I called Delbert. They told me they are not taking any payments at this time and when I asked if I could pay off the loan in full, they said no. They cannot collect any money. I am in NJ. Can you tell me what is happening?
Call the NJ attorney general and ask if they have instigated an action that precludes Delbert from collecting on the loan. Let me know what you learn. If it is not the result of an action in NJ it could be something new that resulted from a larger action.
The same has happened to me they suddenly stopped taking out the money from my account. I have called to no avail no answers as to why I am also in NJ.
Hi there! I currently reside in Texas and have come across the same problem with obtaining a loan and payments made were not even touching the principal amount. Now I am unable to make any payments to it because I have other necessities to get paid and this westernsky aka cashcall aka delbert services is now with a debt consolidation program and yet the amount remains the same, if not higher. Can you provide some insight?
Who is it that you are enrolled with for the debt consolidation program?
I took out a loan with Western Sky about 3 or 4 years ago. I have been paying them faithfully. I happened upon a web page talking about Western Sky and their illegal practices, this site suggested that consumers go on their states Attorney General’s web page. I did just that and found that Nevada’s Attorney Generals office had issued a cease and desist order for Western Sky in Nevada because they were operating without a license and fined them 50,000 it also stated that loans made to Nevada residents could not be enforced, validated or collected through any equitable or legal causes of action in a Nevada or Federal court. My questions are should I stop paying them and can I sue them for the money I have already paid to them? It makes me mad that I have been paying all those years and all that money. Any help would be greatly appreciated.
thank you
Donna
Hopefully someone else from Nevada can chime in with their experience Donna.
If it were me I would call the Nevada AG and ask them about whether your loan was part of their action against Western Sky, and if so, how you can go about getting redress.
Anything for those in Delaware with a cashcall loan?
who do you contact in the state of georgia i had two loans and paid them both off
What is it you are trying to resolve?
Hi Michael.
I am wondering if you have any information of cashcall/western sky in the state of NJ. I took a 2500.00 loan and I have paid over 6000.00. Do you know what the laws are in the state of NJ. I stopped paying and I just received an email stating that I owe 8000.00 But if I make a one time payment of 1600.00 we will not report you. Any information would be great.
Thanks
I am not aware of anything new out of New Jersey.
I just received an email:
October 15, 2015
Re: Your Western Sky Loan # xxxxxxxxx
Dear Customer,
This e-mail is to notify you that the loan you obtained from Western Sky Financial that has been serviced by CashCall has been discharged, cancelled, released and forgiven as a result of a settlement agreement reached between the Colorado Attorney General’s office and CashCall. You are not obligated to make any additional payments under this loan. If you have any questions, please contact the Attorney General’s office directly.
Sincerely,
CashCall, Inc
Hi- just to confirm, is anyone 100% certain these loans are illegal in Texas? I’ve seen rulings in other states but not yet in Texas.
I’m in Dallas, took out a $5,000 loan in June 2013. I was able to negotiate my rate down to 13% but I’m not sure I can keep paying on this for another 5 years. I’m considering stopping payments. If I do, would that reflect negatively on my credit report? Can it be removed? Any tips for Texas consumers? Thank you!
Hey im from NC and i was in a tight spot back in 2013 and i received a loan from cash call for $2,600.00 and i have been paying $296.00 monthly and not missing any payments i called last month to get my payout and they told me it was $2,961.86 ive always paid on time or made arrangements without being late on my payments. how is this so. well i called about a week ago to cashcall to pay my monthly bill because i dont want my credit to be effected and they told me they couldnt receive anymore payments from NC residents that i would receive a letter from the attorney general of NC that they banned all collections for NC residents. ive already paid them over $10,000.00 i have well more than enough paid back my loan. what am i to expect does this mean i will still have to pay will it effect my credit i dont know what to expect and i still have received the letter yet. can anyone please help me i dont know what is going to happen. thanks in advance.
Contact the NC Attorney General office and ask them to advise you about what Cash Call told you. Please post an update in this comment string.
I was able to find a NC court ruling issued 8/27/15 granting in part the state motion for an injunction on continued collection. Skip to page 37 of 38 to get to the courts order. Cash Call is refusing to accept your payments because they are no longer allowed to.
I’m in Florida the date is July 26 2015
What is going on with the Florida case. I finally paid the loan off with much hardship to myself. Can I expect any relief.
Virginia
You can contact the Florida AG’s office directly to inquire about the progress of their case against Western Sky at 850-414-3300.
Lin
Please send me how u removed from yr credit report
I have paid over $9900 on a $5000 loan
I went on site to review my credit file. As a result, I saw that Delbert was on the list. I disputed that I owed them. There are a lot of complaints against them. They deleted them from credit file. You need to stop paying them. They took money from my bank account without authorization and I held the bank accountable. With that in mind the bank had to replace the funds ASAP. IN ADDITION, THEY GAVE ME A NEW ACCOUNT. DON’T WORRY FIGHT BACK!
Lin, I want to dispute Delbert Services on my credit report. I was hoping you could give me some pointers to include in my letter that you think helped you during your dispute.
Hello,
I to took a loan from Western Sky in 12/12 for $5,000.
I have made 30 payments of $474 = $14,250, and my current balance on the loan is $5,075. I took the loan in Atlanta, GA the loan was immediately transferred to Cashcall. and is now with Delbert Services.
I now live in Austin, Texas. Is there any relief. I have paid 285% of the loan and still owe the original balance.
I have worked very had to get my credit up and with to get these folks out of my life.
Any help is appreciated!
Jim
Stop paying these people and change bank account!