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
Short answer
The interest on these online loans is illegal in many states. Western Sky Financial argued it was a tribal lender operating from the Cheyenne River reservation in South Dakota, and that argument has not gone well in the courts. If the payments are not affordable, the realistic options are to pay only toward principal, close the account the drafts come out of, and file a complaint with your state regulator.
Key points on this page
- Western Sky Financial appears to operate from the Cheyenne River reservation in South Dakota. The same operators have ties to several other online loan brands, including Payday Financial, Big Sky Cash, Lakota Cash, Great Sky Finance, Four Seasons Cash and Red Stone Financial.
- The amount and rate of interest these loans charge are illegal in many states. The tribal lender defense raised against state, federal and individual actions does not appear to be going well.
- One option is to keep paying, but only in an amount you can afford, and only up to the principal of the loan.
- Other options are closing the checking account the payments are auto drafted from, and filing a complaint with your state financial regulation office.
- At the time this page was written, Western Sky was not licensed in Florida, and the state of Florida had an active lawsuit against them.
- Expect collection calls and letters from Western Sky, CashCall, or both, if you stop paying. If finances stay tough, or things reach the point of vehicles being impounded and power cut off, it is time to speak with a bankruptcy attorney.
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.
i too feel on hard times, took loan out 2 years ago with what i thought was western sky, then calls came from cash call…now getting calls from delbert services….been reading previous postings..can anyone give me info /advice for someone living in missouri? when are these going to be void/outlawed in this state to where i could look forward being done with these people?
I took out a Western Sky Loan in December 2012, after 4 payments made totalling $721.24 I could not keep up with the payments, enrolled in a credit counseling program and they continued to make payments for me. The CCC paid them $1,296.00. After I noticed the lawsuit from CFPB filed in December 2013, I had CCC stop making payments to Cash Call. Today is February 4, 2014 and I have not heard from Cash Call or Delbert, nor have I received anything in the mail. I live in Indiana and it is one of the 8 states mentioned in the lawsuit. I’m waiting the outcome of the CFPB lawsuit. I don’t know if Indiana will file a lawsuit, but I hope they do.
I live in Wisconsin. I too took out a loan from Western Sky in May of 2013 for 2600 and have been paying 294/month since to only have $3 of my principal paid off. I am shocked to hear that the loan was not even legal and I have made enough payments to almost pay the principal in full. With that being stated, I just put a stop payment on my account and I will begin to contact my local entities to see what more I can do. I am not sure if this is going to slap me in the face or not, but its worth a try. Further, I did call Delbert Service and talked to a manager. I told him that this was an illegal and void loan due to the fact that Western Sky illegal originated and serviced the loan without having a license to contract a resident in Wisconsin. Then I told him Western Sky is protected by US State laws due to them being a reservation, however, it was a front that had Cash Call waiting to assume illegally so that they could take over a loan that had interest rates that far exceed an US states guidelines. The guy told me that “technically” the debt is valid. I told him, no it isn’t because I made an agreement with Western sky who falsely fronted the loan in the first place. The loan is illegal and therefore Western Sky and I are in an illegal agreement with each other. He claimed that he would send me the paperwork so I can see how legal the debt is, but I plan to fight, if anyone has suggestions as to the best course of action, please share. This is very unfair especially because in reality I have paid back all the principal on the loan. I was going to pay it off with tax money which would have left me with nothing, but I knew something sinister was about especially because Delbert kept pressuring me to sign my bank information over to them so that they can perform ACH transactions. My thought was, why would I need to do that if you LEGALLY purchased my loan. That’s because they purchased it, but there was never anything legal about it. I have good credit but not excellent and trying to get a loan at a bank was hard. Sad someone with a 680 score can get a bank loan. Either way, I feel someone liberated and ready to fight. Anyone in Wisconsin going though this?
I am from Wisconsin too. I sent a email to delbert services and my ach was cancelled. The subject heading is revoke ach authorization. When you dispute their validity they are going to send u something with the western sky jargon. Delbert services does not have a liscense in Wisconsin to originate or even collect a debt. A couple of months ago I filed a complaint with the Wisconsin department of financing on which they forced delbert service to amend their email to removing the verbiage that they are liscensed in Wisconsin. When you cancel your ach payment they will call you 30 times a day. You will have to email them a cease and desist email as well. I informed delbert services that I do not negotiate with extortionist. They keep sending me special offers. I don’t respond because if you agree you then enter into an agreement with them. In which I refuse too
Now I have paid my principle balance so that is why I refuse to compromise with those crooks
Thank you Danny. I knew there was something fishy. I argued with the “Supervisor” and told him that Western Sky falsely originated and serviced the loan and therefore it was illegal for him to collect on an illegal loan. He told me that “technically” it was legal….BEWARE to all when they use the term “Technically”. I cancelled the ACH and will definitely create the Cease and Desist email soon. I am so happy that someone from Wisconsin responded. I have paid back 1800 if 2600. Not sure if I should continue to pay off the remaining 800 or just stop altogether. This is great information. Like You Danny I will also reach out to the Wisconsin Department of Financing and if other Wisconsin residents read this they too should do the same. It is strength in numbers that will ensure no one from our state has to endure this.
I thought those living in Florida would like to know. The Attorney’s General office filed a law suit December 23, 2013. The link is below! Also, as part of the suit the Defendants must notify the credit reporting agencys and report that all the Western Sky loans made to Floridians are INVALID!!!!
Please read the suit!
https://myfloridalegal.com/webfiles.nsf/WF/MMFD-9ENM7P/$file/WesternSky.pdf
I see all these complaints being filed by numerous states and the CFPB.In numerous states they are claiming these violations are criminal offenses so why has the federal govenment not filed charges under the rico act there has got to be at least 20 states involved right now.Can anyone answer that ?I find it mind bogeling that these companies 2 of which are owned by the same person just keeps snubbing it’s nose at all these states.
rocco – Civil and criminal RICO actions are pretty rare. I think we will see a good many state actions get settled. I am not sure what to expect from the CFPB action. They are hyper aware of the issues in the micro lending space, so that is good. The CFPB is also a new agency, which makes it tough to read the tea leaves on how heavy the regulatory hammer is in actions like this, because there are not enough past actions to use as a measurement (at least not in micro lending).
Thanks for your reply Michael,I am just a little annoyed with myself for getting this loan in the first place.
I also have a loan with Western Sky. Now Delbert. It was for $5000 and I have been paying $487/month for months. I called today and my balance is $5560.20. I live in Arkansas. What do I need to do?
I too took out a loan with Western Sky, my problem is I have this United place calling me repeatedly they have called my ex they have called my employer wanting to serve me with some papers, they know my address, they will not give me a fax number to fax them a cease and disist letter. How do I get them to stop? I am in Indiana.
Angie – I would encourage you to talk to an experienced FDCPA attorney about any options there may be for the collection calls. Post the name of a nearby large city and I will email you contact info for any I find. Most offer a no cost initial consult. If collection violations occurred, many of these types of attorneys will represent you without charging you a retainer.
A cease communication letter can be mailed. Be sure to send it certified mail return receipt requested. Sending that letter generally would not prevent a lawsuit.
Does anyone know the laws in Maine regarding CashCall, Delbert and western Sky? I have by far paid back what I borrowed from them and like everyone else…I still owe! 169% interest! Delbert has sent 2 offers to modify but I haven’t taken them up on it. They seem tothink that lowering the interest rate to 135% is a great deal!
For those of you who live in New York!
https://www.ag.ny.gov/press-release/ag-schneiderman-announces-settlement-western-sky-financial-and-cashcall-illegal-loans
Well this is an outstanding announcement, Lets hope they follow suit for pa residents!!!!!
I don’t know why there is no language in the settlement agreement pertaining to credit reporting. Cashcall has damaged my credit report with late notices and charge offs. The AG should have insisted that they remove all negative information. I’m going to call the AG office as well as closely follow the CFPB suit against Cashcall. Cashcall are scumbags and I’m sure they will try their best to evade the terms of the agreement.
JR – Great point about the negative credit reporting JR. There are past examples where that aspect is covered in settlements and consent orders like this.
I called the New York State AG’s office this morning and spoke to someone who read me the following (something like this as I was taking notes quickly). If you have not paid back all the principal, you will need to contact the Funds Administrator to discuss having the negative information removed. If, however, you have paid back more than the principal, the negative information will be automatically removed in 2-3 months of when the settlement was dated (January 24, 2014). I asked if it would make a difference if I contacted Experian (which is the reporting agency where mine appears) and he said another woman asked him the same question yesterday, but he didn’t know what the result was.
Tina,
I’m closely following the NY settlement too. My goal is to get all the negative information removed from my credit report. I also disputed multiple times and Experian is the only agency that wouldn’t remove the listing. I spoke to a senior rep at Cashcall a few times, but they just told me to contact the law firm handling the settlement. I emailed and wrote the law firm, a few days ago asking them with help with getting Cashcall to delete the negative info but have not heard from them yet. I will also contact NY State again and the CFPB. The CFPB successfully handled another dispute I had and hopefully they will help.
Thanks for the info, JR! I was going to dispute with Experian again, but each time, they want to charge me for a new credit report, so, I’m going to wait until April to see if the negative information gets removed. Can you provide me with the name of the law firm handling the settlement?
Tina,
The name is the law firm handling the settlement is Feinberg Rozen. They are located at 780 Third Avenue, 26th floor new york, ny 10017-2024 I emailed them and sent a written letter on Friday, attention CASHCALL Settlement. I’ll probably follow up with them in a few days and contact the Cashcall rep again. Experian is the absolute worst when it comes to disputes. We’re going to need Feinberg Rozen to force them to remove the info. It this fails, I’ll go back to the CFPB and file complaints against everyone involved.
I just spoke with a senior rep at Cashcall. They began sending out information on March 5th regarding the settlement agreement. You need to fill out a claim form and send back to Feinberg Rozen. I asked about credit reporting and didn’t really get a definitive answer. its likely the person I spoke to doesn’t have the authority at this point to make changes and it sounded like our best bet is going to be the Administrator and NYS.
I wonder how long its going to take the BBB to update this onto there web site seeing how long it took to update the last time?
I have a payday loan with one of the Tribal lenders called United Cash Loans, and had been a regular customer with then and no real issues except for the flat fee high interest, but anyway, still did business with them. Suddenly several months ago I got an email telling me that they could no longer do ACH withdrawal for payment and I needed to call them to make new arrangements – it made me suspicious, but I did call and the rep told me that they had a computer issue and that why they could not do ACH anymore. I did NOT give them my credit card like they wanted and so have not paid them since. Last week got another email about they have a third party that I should call.
So – any info out there on United Cash Loans, are they out of business or what?
Thank you, Warren
And I really don’t care to get money back. I just want them to go away and I can’t be hate added at work or I could get fired. Also if they report a charge off on the credit file, it is not that hard to recover from that. Sure it takes a little time but it is possible to bring your score back up in other ways.
I have a loan with western sky. It was transferred to cashcall and now delbert services. I had a payment arrangement to pay on the 17th but did not do it. I didn’t have the money to do so. Normally they call every hour on the hour but I have not heard from them since I set up this arrangement at the beginning of the month. I am just wandering if they finally shut down too. That would be great. I am scared to call them just in case they have decided to stop collecting. Anybody have any updates on them. I know my state(NC) was included in the law suit.
I borrowed money from Western Sky/Cash Call also. I took a settlement to make 8 payments and be done. I made 7 payments and then had difficulty making the last one. They were unreasonable and didn’t want to work out anything else that I could afford. Now I have American Credit calling me and harassing my family members about this debt and threating to take me to court in South Dakota. As anyone else dealt with this American Credit company? I can’t seem to find any information on them and they’re unwilling to give it.
I want to update those who live in Florida.
I sent a letter to the Consumer Financial Protection Bureau
and received this response from Delbert Services:
“In summary, this loan is valid and is currently being serviced by Delbert Services Corporation. Delbert Services Corporation has confirmed it has the ability to enforce the terms of the loan and that all material terms were disclosed to Ms. ____ before and after her loan funded. Nonetheless, Delbert Services is willing to reduce Ms. _____ interest rate to twenty percent (20%) for the remaining term of the contract to fully resolve the matter. Please have her contace me to accept this offer”
However, the Florida State Attorney responded to my complaint:
“The Office of Financial Regulation has forwarded your complaint to the Florida Attorney General’s Office for review. Thank you for making us aware of this matter.
We use complaints such as yours to identify patterns of questionable business activity. These patterns may indicate the need for formal investigation or action by our office to protect the broad public interest.
On December 23, 2013, Attorney General Pam Bondi and Office of Financial Regulation Commissioner Drew Breakspear filed suit against online consumer finance companies Western Sky Financial, CashCall, related companies and their owner John Paul Reddam. The suit alleges that the companies charged interest rates that far exceed what is allowed under Florida Law. ”
My question to those who know, I don’t have to agree with the 20% interest rate, right? I mean I paid the principal and much more.
Hope this helps.
This is the same response i got from them when i sent my complaint to the the CFPB.Its obvious there going to keep doing what there doing until they are either shut down by the federal government or you just stop paying them.Then they are going to ding your credit report.If i am not mistaken west virginia has a jugdement against them and they still haven’t payed them.In my opinion i think there going to drag this out in court for as long as they can and if they loose they are going to sell the companies or file for bankruptcy and nobody will get anything but that is just my opinion and i am not a lawyer.
At this point I’m not looking for money just to get rid of this ridiculous payments. I don’t want for them to ruin my credit either.
I’m from NC, AG filed on 12/16.
I have a loan with WS that is being collected by DSC. I have paid well more than the required monthly payments. Since I am ahead of the loan payment schedule, can I skip a payment without it being marked 30 days past? I have spoken with them on the phone about this and they says I would need to be granted a deferment. Does this mean I will be reported late if I don’t pay that month even though I have paid more than was required?
Also, how long are the lawsuits expected to take? I don’t want a ding on my report because I am looking for a job and there’s a chance a prospective employer will check my credit. Since DSC is not acting fairly towards me I have no problem not repaying the principal if a judge rules in favor of the AG, but will this drag out for years? Also, will part of the AG/CFPB lawsuit end in a ruling that the credit reporting agencies are to ignore reports from illegal loans?
JJ – I would not do anything that would hurt your credit if you believe that it would impair your job prospects, if you can help it.
The lawsuits can easily drag on for more than a year. Part of a favorable consumer outcome to the lawsuit would be if the loans were considered illegal and void, and that credit reporting of any nature is not permitted.
Thanks for the reply Michael. After writing a complaint to the CFPB I got the same response as the comment below mine, which is that they want to reset the interest rate to 20%. I’m thinking that is a good option since as you stated it can drag out for a year or more. Though, I believe if I take the offer and the AG wins the lawsuit my loan is no longer void but within the legal limits. Am I current in assuming that? If I do take their offer I would like for all the interest above 20% in the past 8 months that I paid to be applied to principal. What are your thoughts?
JJ – You can certainly respond to the offer letter from Delbert for 20% and see about them agreeing to apply that retroactively.
I do not know how this will all turn out, but there is also a chance that the loans are determined to be void and the principle unenforceable. If that occurs I am skeptical that anyone would see any money back that had already been paid.
My thoughts are in line with yours if the payments are affordable, and you care about your credit. If either of those 2 things were not your reality, as is the case for many, much of the comments in this string would need to be considered.
Hi Michael Bovee,
Thanks for taking the time to respond to me and others. Do you know of any attorneys in NC or at least what kind I can speak to about my loan. I am in a tight situation and as explained above am well ahead of payments, but the continue to charge late fees and say I cannot skip any payments even if I am 7 payments ahead of the schedule, and that it will be reported late. I’ve seen some people say they had success in telling Delbert they will sue if they are reported late, and have not been reported late.
If this loan is considered void by my NC AG (filed 12/16), even if there hasn’t been a ruling yet, does this mean the arbitration clause is void and I can sue Delbert directly in court? As you can see from my earlier comment to Nikki, they want to refinance the existing principal, not make the loan retroactively 20%.
Also, should I take this to arbitration? I’m wondering, if they arbitration is favorable that would put an end to it. Also, perhaps the threat of arbitration at this point, given the volume of legal action against them, maybe the will just fold and reduce the interest rate retroactively?
Thanks,
JJ
JJ – How this all may shake out in North Carolina would be pure speculation on my part. I am familiar with how serious they take these types of consumer concerns (having interacted with, and observed, their offices as relates to debt relief services). Those experiences find me optimistic for what would be a very favorable consumer-centric outcome for NC residents. But you should indeed run your questions RE court and arbitration etc., by an experienced consumer law attorney. I can email you contact points to some if you would like?
JJ did you reply to the 20% offer if so what was the outcome?
Hi Nikki,
Yes, I responded and it was a trick to get me to refinance the existing principal at 20%. If I do that, it would be a legal loan I suppose and they would keep all the ‘interest’ paid on the original loan. After having paid 8800 on a 10000 loan I would have refinanced 6900. I told them no and I’m waiting for the AG to push this case through in NC. I don’t know how long a judge will take to make a ruling, but considering that NY, which has similar loan laws, has already won a suit and settled, I can’t believe it’s taking this long. It has been 2 month already and I haven’t seen a single update.
I’m wondering if using an attorney or taking them to arbitration would encourage them to offer me the same settlement agreement as NY residents have been offered.
Okay thanks that’s what i figured! I definitely wont respond then. I thinking it will probably be a year or so. When I researched the NY case it took about 6 months for a resolution. I’m waiting on a response from my AG aswell i submitted in late January.
Does anyone know if these are illegal in Idaho. Balance seems to be increasing. I have paid way more than I have borrowed.
I too live in idaho and as far as I can tell they are legal in Idaho, however that doesn’t make their practices right! The interest they are charging me is 537%…so on a 2550.00 loan I will have paid them a total of 16,000. I have paid of the amount of the loan plus 1000.00. At this point I have closed my bank account and i will wait and see what happens. Since Idaho has no cap on interest a company is allowed to charge, I would love to know what my options are.
Hi Jaida,
Could you tell me what happened with the loan that you had in Idaho?
I have the same problem, took out a loan for $5000, and I have paid over $7000 dollars.
I live in Florida, took a loan from Western Sky, they transferred the loan to Cash Call, now is Delbert Services. Delbert services contacted me about authorizing ACH withdrawals, I never authorize it and they withdraw money from my account every month.
I was desperate to borrow this money, my son was diagnosed with an illness and I needed the money.
Please help.
Carol – You can work with your bank to stop Delbert ACH withdrawals. You should click on the link in the original article above that takes you to the Florida state regulator that was actively working on complaints against these online lenders. Please post an update comment about how that goes.
Michael:
I sent a letter to the Florida Office of Finace Regulation. This is what they responded. I hope it can help some of you.
Your concerns have been reviewed by the Office of Financial Regulation. We appreciate the opportunity to serve you.
Our review of your inquiry indicates your concern is regulated by an agency outside this department. In an effort to assist you, we have forwarded your correspondence to:
Florida Attorney General
Office of Attorney General
State of Florida
The Capitol PL-01
Tallahassee, FL 32399-1050
The Florida Office of Financial Regulation and the Florida Attorney General’s Office recently filed suit against Western Sky Finanancial, CashCall, and other related entities. Follow the below link to view the press release:
https://www.flofr.com/PressReleaseDetail.aspx?id=4228
OFR appreciates you bringing this matter to our attention. Thank you for your patience and cooperation throughout our review process.
Thanks for posting this Carol. I updated the original answer to the reader question above with the link you provided.
Wellsfargo in Fl told me they can’t stop the ACH so i closed the account so delbert constant sends papers for a new contract. Don’t do this people, do not sign.
I work for a bank. I DO NOT understand why customers’ banks are telling them they cannot stop these drafts. That is AGAINST banking regulations. They can either stop the draft by the dollar amount or stop the draft by the company id number that comes across in the ACH file. It is against banking regulations for a bank to tell a customer that they can’t do a stop payment UNLESS it is in violation of the time frame they require for putting the stop payment on for the current draft coming through, but they can still put one on for the future drafts (ie. you request the stop pay Monday and the draft is coming through on Tuesday) I would request for them to show you what their time frame requirements are too. If they give you a hard time then get a supervisor of the bank and request that they explain why they won’t put the stop payment on. If they give you any heat tell them that if you are within their time frames of putting a stop payment on and they refuse to, and the company comes in an takes any money, they will be immediately reported to the Department of Banking in your State and you will contact a lawyer. There are alot of banks out there that take it upon themselves to decided what you can and can’t put a stop payment on and decide for themselves whether they think you owe the money. THEY CANNOT DO THAT. If you did not give them the appropriate amount of time to put a stop pay on for the current debit, go ahead and put it on for future ones and then request to do an ACH Authorization Revoked. You may have to show them a copy of your Cease and Desist letter. And it needs to be dated far enough in advance to allow the company to stop an ach file. Once the draft comes out then they will return it and credit your acct back with the money. As a bank employee, I understand for some of these banks that it gets frustrating because you get these people who come in and do payday loans etc and then a week later want to put stop payments on and not pay them, BUT it is not up to the bank to decide whether the consumer owes the money or not. They are to put the stop payment on and then it will between the company and the consumer.
I don’t know about a bank ?but i am telling you that my credit union in my state specificaly told me i cannot put in a stop ach withdrawel.The only thing i could do is put in a stop payment for 15.00 for each stop payment that then becomes permanent.But if they come in and use a different business name example cashcall one time then delbert services the next.I had to put 2 stop payments at 30 dollars.Then they said if they try to withdrawel using another name they can still get the money and i would have to put another stop payment in.I did let my dept of banking know about this problem but i don’t think they are going to do anything even though they have enforcement actions against cashcall ,delbert services and westernsky.
Carol,
I too live in Florida and took a loan out with Western Sky. I am in the same situation with a slice difference I still have a $2300 principal balance. I was not sure what to do! I asked for guidance on this side but was not given anyting specifically. In addition to being confused, so I just filed a complaint with Consumer Financial Protection Bureau (CFPB). I am waiting for a response at this point. Needless to say, I did initiate a stop payment followed by closing my account a couple weeks later.
I wish you luck!
Hi Tracy:
I also filed a complaint with CFPB and BBB. I contacted their office and wrote a letter of cease and desist asking also to cancel my EFT. I called my bank and put a stop payment. They sent me an email yesterday stating that the EFT was cancelled, but I should be aware that my payment is due the 1st of each month.
I hope they don’t after me, I am going through a tough time as it is with my son.
Thanks
Hi Carol,
I guess I should send a cease and desist letter because they call me multiple times a day. I did send Delbert an email informing them to “stop calling me” and to send all correspondence via United States Postal Service. What do you think? I had not filed anything with BBB yet. Maybe I should do that today!
See my previous post to Michael. I received a response. Apparently, there is a law suit against them. You definetely should write a cease and desist letter to stop all communication with you. I wrote an email and received a response, but I also sent a certified mail to them.
You should definitely filed with BBB and with the Florida Attorney’s Office either online or by mail.
Florida Attorney General
Office of Attorney General
State of Florida
The Capitol PL-01
Tallahassee, FL 32399-1050
Hi I’m in nj what should I write in the email
Carol,
I received the below response! I am really confused because there appears to be others who have complained! I am not sure what to do!!!!!! Does anyone have any suggestions!!!!!!!!!!! Maybe I will try and phone CFPB tomorrow.
Auto-Response 01/15/2014 05:25 PM
We reviewed your complaint and couldn’t send it to the company for a response. This could be because we’re unable to identify and register the company or because your complaint did not involve a Federal consumer financial law within our authority.
What happens now?
We sent your complaint to the Federal Trade Commission, where they’ve added it to a database for state and federal law enforcement agencies.
Can I hire my own lawyer to look into this?
Yes. While we can’t give legal advice or represent individuals in legal matters, if you want more help you can contact a private attorney or your local legal aid office for free or low-cost legal resources at http://www.lsc.gov.
Is that it?
Not by a long shot. Complaints help us identify trends and problems in the marketplace and understand the challenges people are facing so we can do a better job looking for these problems when we supervise companies, enforce Federal consumer financial laws and write rules and regulations.
Thank you,
Consumer Financial Protection Bureau
consumerfinance.gov
(855) 411-CFPB (2372)
Tracy I would send a new complain for Cash Call (they may not be able to forward with Delbert) list as consumer loan. Good Luck!!!
This was the same response I received from the CFPB. I want to write another complaint but not sure how to word it. I don’t want to get the same response.
Here is my complaint with the CFPB regarding CashCall
Product Credit product: Installment loan
Issue Managing the loan or lease
I currently have a loan with Western Sky that was later sold to CashCall then Delbert Services. I recently became aware that the loan practices were possibly illegal in the state of Indiana. I am filing this complaint to inform that I am affected by their practices. I received my loan for $x,xxx in 20xx and started paying in 20xx ($xxx per month) and I am currently still making payments. I have repeatedly tried to get assistance to reduce my payments due to a personal hardship. But have not been given any resolution.
Kelly, I would also file a new complaint with the AG office indicating the laws referenced in the Cease and Desist letter that was sent to you and also indicate that you are aware that the CFPB has filed a lawsuit indicating Indiana as one of the States affected by their practices. maybe attach a copy if you can. Also in your complaint indicate if you have paid the principle in full.
I filed a complaint with the State AG in January and have not heard back yet. What did the State advise you to do?
Also Cash Call did respond the the CFPB compliant that it would reduce my remaining balance interest rate to 20% but i didnt take that either as I’ve already full paid.
Hope this helps
I have a loan with Western Sky/Delbert and live in Florida, when I looked today Delbert showed my interst rate was lowered to 18%, and instead of owing for 3 more years shows loan will be paid off this December. I called and was told that they had lowered interest rate for Florida and indeed will be paid off in December
If thats what you ant to do, then sign but i won’t if they are illegal, if they do things illegal, why do you trust what they will promise you?
Carol,
You need to speak with the manager of your bank. Explain that DELBERT did not have authorization to withdraw funds from your account. This happened to me and I insisted that the funds be returned. The question becomes did it happen? YES! !!!! CLOSE YOUR ACCOUNT AND DO NOT GIVE THEM ANYTHING ELSE!
Loan was with Cash call which is with Delbert Services now
F – They would have to sue you in court and get a judgment against you before they could attach wages, levy a bank account, or file a lien.
One way some people are approaching things is to have stopped payments after the principle was paid back, and are holding payments back in a savings account, pending the outcome of some of the state and federal issues.
thank you so much for your quick resposne Michael. Since i have paid back the principal, and then some, what would you do? I live in VA and i know they are illegal here now that i have read all of this. I am on there website now getting ready to write them an email revoking ACH authorization and possibly shutting down my checking account and let them know i am filing a complaint and will also mail a c&d letter. I haven’t missed a payment yet. I have one due on the 15th that i do not plan on paying as i cant afford these $743 monthly payments anymore.
If it were me in that situation I would be one of those that stops payments, and even if I could not afford the full amount of the normal monthly payment, hold some back in a savings account (say 50%) pending the outcome of my complaints, or the different government actions. If all goes well, I will have set up and funded my savings account that can be used in emergencies – rather than tapping high cost loans like those from Cash Call and Western Sky.
Makes perfect sense! I would be saving $$ instead of borrwing from people like this!
thank you!!
Just be aware that cash call will ding your credit report…….I’m not telling you not to stop payments because I did and I filed my complaint with the Consumer financial protection bureau (because Ohio is not doing anything), just be aware that your credit report could/will suffer until all is ironed out. I am trying to work out an agreement with Delbert/CashCall/WesternSky with the help of the CFPB because I have not paid back all my principal yet and then have it removed from my credit report.
Good point Olivia. Please do update this page with how all of this shakes out.
Michael,
I have submitted a question with Subject “My lawsuit case information showing up on google search” and I was not able to find that link now.Could you please tell me how to find that link?
Thanks,
ND
I found it. You submitted the following:
“Today When I searched my name in google,in one of the search results county court website is showing a lawsuit case filed against me Filed by Unifund LLC attorney and which I did not have any idea till now (I never received any letters from collection agencies or regarding lawsuit letters).
My First question how can I fight against this lawsuit? and my second question how come a county court case information is showing in search results. I wanted to stop this in search results first,How can I do that? Please advise.
Thanks”
ND – I cannot comment much on how to have the court information scrubbed from a search engine. But one way to address both concerns is to attack the judgment at the source. That means trying to undo what Unifund LLC did by getting a default judgment. You would want to work with an experienced debt defense attorney in your efforts. post the name of a nearby larger city and I will email you some contact info to some attorneys you can call. Most of this type will offer a no cost initial consult.
Well Delbert made an offer to me through the CFPB to pay my principle balance in a lump sum or over 9 months. I am open to paying back the remaining principle, I feel I at least owe them that however I am trying to negotiate with them to have the negative information removed from my credit report in exchange. Any tips….
I took out a loan for $9225 a year ago and so far i paid $11,340 (principal and interest). Monthly payment is $743 and i do not want to pay them anymore after what i read here. My question is, will they be able to go after my salary and contact my job and place a wage assignment?
Thanks!!
I took a loan out with western sky for 2500 about 14 months at295.00 a month never miss a payment bal.today is 2800 they take it out of my checking acc.it was cash call now delbert they kept calling wanted me to sign papers said they took over western sky billing.i hang up on them but I told them I wasn’t going to sign any.gets to much money I already payed.i live in Columbus Ohio .what should I do?
Does anyone have a template of the letters (especially the cease & desist letter) you sent to them so they will stop