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.
Hey tammy what additional info do you have regarding indiana and delbert?
Sorry to post so much. Need to also ask should I let the AG & CFPB know about this new ‘change of hands’ from Delbert to this CCI?!
I tried to dig up details about CCI Acquisitions LLC, but my targeted search results were limited to generic information about the company formation in Florida:
If it were me in your shoes, I would update any active complaint I had going with your AG and the CFPB.
Very interesting. Thanks Michael. I will follow up as you suggested!
Yesterday, I spent a good amount of time filing complaints with the Attorney General’s office & CFPB on Western Sky/Delbert Services. I probably didn’t do a good job relaying my issue but did as best I could. Anyway, I then went to Delbert Services website to tell them to stop calling and emailing me. This is the response I got….
Hello Ms. K,
Thank you for your correspondence. Please be advised your account is no longer
with Delbert Services and is being handled by CCI Acquisitions, LLC. For any
further questions regarding this account, please contact CCI Acquisitions, LLC
at (305) 851-6066.
Sincerely,
Richard Mason
Customer Concerns Department
714-722-6931
Who in the hell is CCI Acquisitions LLC?! I can not find any information on them. I sent Delbert another email stating I want a copy of the transaction being done, as I wasn’t informed at all. I also asked for the address of this CCI as I figured they would already know.
Michael, can you see if you can find out anything on this Company that Delbert mentions? Any info would be appreciated.
I should state the last time Delbert has emailed me was in September to offer me a ‘special’ deal.
Is there anything at all for People that live in Tennessee? Delberts on my credit report now and my score dropped like a bomb.
I called Delbert Services and advised them that I will no longer be making payments on this loan about a week ago. I told them that I have paid back well over the original $5k loan and that I will be disputing the legality of this loan. The loan was originally with Western Sky, but was immediately transferred to Delbert Services. Of course they threatened me with the “we report to the credit bureaus” if I don’t pay anymore.
Today I received an email saying that servicing of my loan has now been transferred to CashCall, Inc. out of California. I wonder what that is about?
Hi Jeremy,
CashCall is still part of Delbert basically. I would go to your Attorney General’s website and check to see if they’ve filed court papers on Delbert. Then like others on here have done, file a complaint with the AG office as well as CFPB. I’m in Indiana and I was able to find the court papers. Not sure if this helps. I just read thru other posts to help me out.
Minnesota also filed suit against CashCall/WS Fudning/Western Sky etc., and was added to the CFPB complaint. So far I have verbally told CashCall I would not be making another payment, revoked the ACH authorization, filed a complaint with the MN AG’s office, and sent a hard copy of my complaint, ACH revocation, cease & desist letter, and copies of the MN & CFPB complaints to CashCall via certified mail. I’ve received 2 collection calls from CashCall so far this week, but I just mailed them on Monday so I’ll wait and see what happens.
I too have the same situation as the above comments. Can anyone give me information regarding the laws in the state of Oklahoma.
My husband also took out a loan with Western Sky and has paid off more than he borrowed but they are threatening to charge it off. We live in OH. The original amount of the loan was 10K. Delbert Services are the ones who have been collecting on this for around a year now. Please help us to know our rights.
I too have a loan that originated with Western Sky and then was immediately transferred to Delbert Services. I’m in Minnesota. The loan was for $5k and I’ve already paid over $5k back at $486 a month. I called Delbert yesterday to find out what the balance was and almost lost it when they told me it was still $5500!! I told them I won’t be making anymore payments and will be filing complaints. Any idea of the legality of this loan in Minnesota?
I took out a $2600 loan from Western sky in January 2012. I have paid over $7000 and I have just learned that those types of loans might be null and void in New Hampshire where I live. any advice is appreciated.
Benny
I took out the same amount in Nebraska. If you send me an email I will give you details of what I did. They sent me a letter saying the loan is paid in full. I had paid around $4900. You can reach me at garymbenson dot gb at gmail dot com
Gary
I have been reading the latest comments on here and trying to process all the information. I too took out a loan with Western Sky, now Delbert Services. I made just one payment, as I moved and didn’t have a job yet. Most of my contact with Delbert has been emails and of course, the harassing calls. I know a suit was filed and my state, IN, is listed. I know to file a complaint with the AG or the State Banking Dept. Do I do that online or will I have to talk with someone to do it?! How do I find their info? Also, will it be the same with CFPB?! Can someone please help me with the process of what to do and a cease and desist letter too. I’d like to know the step-by-step process of what I need to do. I’ve never had to deal with something like this and I want to make sure I get it all right.
Hi Tammy, you can file you claim online with the AG office in indiana http://www.indianaConsumer.com and with CFPB online as well http://www.consurmerfinance.com. You can send an email to Delbert requesting that they nolonger contact you or attempt to deduct payments from your account. Hope this helps!
TY Nikki! What about the cease and desist letter?! I actually forgot who that goes to and how should it be written? Also, I forgot to ask about Experian. Do I file a complaint online first or what. All this is so new to me, it’s crazy! I will email Delbert too. After I made my one payment, I closed that bank account. The only contact I have with Delbert now is email and calls.
Hello Everyone from IN,
spoke to a rep in the AG office today and was advised that they are still working on claims and continue to be patient.
I got a crazy call earlier, which made me remember to place my numbers on the no call list, which in turn, got me thinking about Delbert. I was actually able to find the paperwork the AG has filed on Delbert. So it’s bookmarked now. I just need to get my claims in now. Just really wanted anyone in Marion County to know about the paperwork in case you wanted for your records that’s it’s been filed.
I got another call from someone saying a claim has been filed against me, etc. I called the number and I spoke with a person very briefly. I got her to tell me the name of the company…Alliance Capitol Mgmt. Anyone else deal with them?!
they’re probably going bankruptcy and trying different tactics to get payment i would ignore them didn’t they just say a day ago that a different co had your loan. I would ignore them and tell them to stop calling and if they continue get as much info you can to give to the AG office.
I just let Tom from the AG office know about the calls and gave him what info I had. I really don’t know if it’s Delbert but I’m pretty sure it is. The lady sure didn’t want me to know the name. I have the number blocked on my mom’s home phone now and my old job also told them not to call there anymore. I unblocked the number from my phone as I want to keep track of how many times they call.
Can payments to Western Sky/Cash Call be put back into your banking account from your financial institution? A poster commeted they were able to get money back from their financial institution. Is this possible? What is the process?
Your bank is likely the best resource to tell you how that works with your account.
Anyone doing business with Western Sky aka CashCall needs to check with your Attorney General Office. In my state, collectively we all sued CASHCALL and got most of our money back. They are not located on a reservation that is why they have the BAIT and SWITCH set up. CashCall is only legal in a few states as a result of all attorney general offices suing them and pushing them out. Also, do a cease and desist letter and copy your back to not allow any payment out of your accounts. If your bank doe snot abide, they too can be sued. This requires a little work and effort, first check the rate of interest loans online in your state, then contact your Attorney General’s Office for your state – the BBB has them down as SCAMMERS.
Have you ever thought about adding a little bit more than just your articles?
I mean, what you say is valuable and everything. However
think of if you added some great graphics or videos to give your
posts more, “pop”! Your content is excellent but with pics and video clips, this blog could certainly be one of the
most beneficial in its niche. Very good blog!
Thanks. I do have videos on some pages, but could admittedly do much more with that.
I have not looked into adding images to article pages much. I do intend to update the site before the end of the year, and will be looking at more of a media rich presentation. Stay tuned.
Hello everyone, wanted you all to know I was able to get western sky, delbert off my credit report with experian (only credit reporting agency that still listed them). First I filed a complaint with them directly ( experian) nothing really came from it, I later contacted the cfpb and indicated that the compliant had not been resolved and these loans are considered illegal in my state. Received new report yesterday indicating delbert, western sky, cashcall have been deleted.
Nikki
That is encouraging news ! I have filed a dispute with experian twice with no luck. I filed a complaint with CFPB this past Monday against Experian. I have yet to here back from them regarding the charge off they have posted on my credit report ! How long did it take you to get a response from CFPB ?
It took about a week to get a reply but oddly enough I received my reply from experian directly advising of the deletion, haven’t received a reply from cfpb yet.
Got a response from CFPB today that Experian has agreed to remove the Delbert charge off from my credit report and they will be sending me a clean copy of my credit report within 10 days !! Finally !! NOW if NJ and CFPB could just get on with a settlement with these predators !!
Nicely Done Double and Nikki!
If either of you would not mind sharing your start to finish complaint process using the CFPB web portal, and your impression of how this worked for you, I know other readers will benefit from your perspectives.
Hi Michael,
First i contacted Experian online and disputed the charge off from Western Sky/Consumer Loan trust etc that this loan was illegal and should not be reported. That really did not result in anything actually. After 30+ days i contacted CFPB and initated a complaint against Experian stating that i had not received a resolution and they were reporting incorrect information on my credit report. (If you have your complaint number that would be helpful but not necessary) After a week or so my complain was resolved and the loan was deleted from my file.
Thanks for sharing those details.
It would appear, from some of these recent posts, that real results with getting these loans off of credit reports share a common denominator of the CFPB complaint process.
Michael – you are doing great service through this site.
I am in Texas and have a CashCall loan. To anyone who had success with removal from Experian, can you please clarify exactly what language you used when
1- You Contacted Experian through their online disput processs
and then subsequently
2-When you contacted the CFPB , where on the web site etc.?
Also, is doing the dispute first with Experian and waiting the 30 days necessary in the eyes of the CFPB?
Again , thanks to all for sharing and giving hope to people you may never meet in “real” life.
Along with everyone else, I took out a loan with western sky in July of 2013, for $1500, 500 of that was taken immediately for fees. Within a day or 2 the loan was sent to Delbert Services. As of July of this year I had paid back at least $800 of the principle. I stopped ACH payments to them when i found out that WesternSky had been shut down and that the loan was more than likely illegal in my state of Indiana. Once I stopped payments, I received a few phone calls from Delbert, then those stopped. Recently it seems that Western Sky/Delbert sold the account to a collection agency called Admin Recovery LLC, claiming I still owe over $1400. Admin Recovery did call my parents, work, home, and cell. I told them that per the state of Indiana the original loan with Western Sky is null and void in the state of Indiana due to it being an illegal loan, the gentleman John laughed at me when i said that. I explained that I have paid back a good portion of the principle amount. I also told them that they are not allowed to contact me or any friend, family member via phone. That if they violate any of the Fair Debt practices that I would be reporting them. John laughed again and said report away.
What is my next step? Do I report Western Sky/Delbert to the Indiana Attorney General, State Banking Department, etc? Also can Admin Recovery legally collect on this? My thought after reading thru all the comments is “no” since the loan is not legal.
I also see that:
“The CFPB’s complaint alleges that defendants CashCall, WS Funding, Delbert, and Reddam have violated the Consumer Financial Protection Act’s prohibitions on unfair, deceptive, and abusive acts and practices. The Bureau’s investigation showed that the high-cost loans violated either licensing requirements or interest-rate caps – or both – in at least eight states: Arizona, Arkansas, Colorado, Indiana, Massachusetts, New Hampshire, New York, and North Carolina. Under statutes in at least these eight states, any obligation to pay such loans was rendered void or otherwise nullified in whole or in part by law. Therefore, the defendants are collecting money that consumers do not owe.”
Indiana is a part of the above statement. Do I send a cease and desist or validation letter to the debt collector with that information?
Hi Joy I contacted the attorney general office in indiana and filed a complaint with the cfpb indicating the case against western sky etc. You could send them a cease and desist letter. If they are contacting you visa email you can send them a letter via email as well. I think there a few examples on this thread. Also if its on your credit report report that as well. With the agency and cfpb.
Anyone have any experience with usurious CashCall/WS/Delbert loans in Illinois? As with many other commenters, I (unfortunately) took out a Western Sky installment loan for $2600. At this point, I have paid $4900 towards the loan and the principal balance is now a whooping $2700 – $100 more than I borrowed! I submitted a complaint via the Consumer Financial Protection Bureau and received the company response from Delbert stating that I need to contact Western Sky since they were the loan originator but was also told in that same letter that I had been informed of the interest rate and amortization schedule and never stated that I was confused or did not understand the terms. I am going to send a complaint to the Illinois State Attorney General’s Office as well and call the Illinois State Department of Banking. I do see that the CFPB has amended the lawsuit to include Illinois (along with several other states) due to CashCall/Western Sky not having a license to lend in those states (copy of the amended complaint: https://files.consumerfinance.gov/f/201403_cfpb_amended-complaint_cashcall.pdf). For those individuals who did stop payment on the ACH withdrawals- how badly did it hit your credit? As of now, I have paid the principal balance of the loan and much, much more, but I worry about cancelling the payments and trashing my credit (which I have worked very hard to improve). Any information would be greatly appreciated!
I took out one of these loans a while back myself for 10k. Like everyone else, I paid the payments until I found this website. So far, I have paid back $10,600 and then back in March I cancelled the EFT’s. Of Course, I get the call everyday, but I really don’t care that much. I took the loan out when I lived in Florida, I can’t see that there is anything going on there now though, only the PDF of the supposed filing. I have researched the laws governing this in FL and it appears to me that it would be impossible for them to get a judgement. I live in New Jersey now, since the end of December 2013. I am curious if my change of residence changes anything with Delbert/Cashcall/Western Sky as far as collections go.
I live in Nebraska. I had a $2600 loan with Delbert Services that I paid $294.46/month for just over a year. After reading this site, I contacted the State of NE Dept. of Banking and Finance. I spoke to a nice gentleman who has dealt with Delbert before. I sent him a copy of my contract. He called me back to say that it was an illegal contract with 135% interest. He wrote a letter to Delbert Services lawyer, telling them to stop all collections and refund my money. Within 2wks, Delbert reported my account paid in full. No credit hassle, no calls or letters to Delbert by me…. I encourage people going through this in NE to contact the Dept of Banking and Finance located in Lincoln, NE.
so lets go over the whole thing!
when i talked to the investigator, this is what i was told : if the state your in when you made the loan, has laws about interest rates or payday lenders or they were not license by your state the whole contract is void! because a contact can not be made that breaks the laws!
of course Delbert services or cash call: re western sky is not going to tell you this ever!
now getting it off your credit report took me so time they go to Delbert services and ask them if it a valet debt: well of course they lied! so what i ended up doing was sending the Experian a letter with my case # told them if they didn’t remove this illegal item off my credit that i have been nice trying to get removed, the whole thing would get real ugly fast because i was going to sue them for defame my credit! is was off my credit in 2 days after they got my letter!
i dont care if Delbert or cash call re western sky thinks i owe them as long as it not on my report!
Is there anyone in Michigan and what did you do?
I am in Michigan. I had a loan. I had paid the principal by the time I learned of the Western Sky/Cash Call/Delbert hustle. I stopped paying and sent Delbert a cease and desist letter. They hit my Experian credit report. I disputed the information. No Change. I disputed again with additional information. No Change. I contacted the CFPB and place a complaint against Experian. The entry was deleted.