Repay Your CashCall or Western Sky Loan?

I have a loan with a company called Cash Call that I am behind on, they are not willing to work with me. What are my options?

My question is I have a loan with a company called Cash Call that I am behind on two months actually and I have tried to call and make arrangements with them and they are not willing to work with me. What is the minimum amount of money I could send them to where they could not garnish my wages? I did contact a lawyer and wanted to file bankruptcy and I did previously in 2000 they said because it has not been 7 years I would have to wait until next May 08. I am not denying the fact that I owe the money I am just in a bad situation and want to try and just deal with there harassment until next may. If you could please let me know what I will need to do I would appreciate it.

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Bill's Answer
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Highlights


  • Loans from Cash Call and Western Sky are similar to payday loans.
  • Internet loans are among the highest-interest consumer loans available.
  • The CFPB filed a lawsuit against CashCall and Western Sky in December 2013.

CashCall and its affiliate Western Sky lend from $850 to $10,000 to consumers with rates ranging from 90% to 343%. A typical CashCall or Western Sky loan of $10,000 costs more than $60,000 to repay, and a $2,600 loan will cost you $13,840 over a 4-year period.

New York Settles with CashCall & Western Sky
Source: NY Attorney General
In January 2014, the New York attorney general announced New Yorkers need to repay only the principal (and not interest) on their Western Sky and CashCall loans. New Yorkers who repaid more than the principal plus the legal interest rate of 16% should apply for a refund with the refund administrator.

According to studies by consumer groups, these high-interest loans are pitfalls for consumers. Due to their high rates and fees, studies find that borrowers are better off avoiding the loans, and working out a payment plan directly with the creditor they want to pay with the high-interest loan.

If you default on a CashCall or Western Sky loan, it can, in theory, take the same action as any other unsecured creditor to enforce a defaulted debt. Collection efforts will start with telephone calls, letters and e-mails demanding you pay the balance of the loan. If CashCall or Western Sky refers your accounts to a collection agency such as Delbert Services Corp., you can stop the telephone calls by sending a cease communications letter, commonly called a cease and desist notice. The federal Fair Debt Collections Practices Act (FDCPA) states that collection agents must stop calling you when you notify them in writing to do so.

CFPB Sues CashCall
Source: CFPB
In December 2013, the federal Consumer Financial Protection Bureau (CFPB) filed lawsuits against CashCall and its two subsidiaries Western Sky Financial and Delbert Services Corp. for unfair, deceptive, and abusive practices, including illegally debiting consumer checking accounts for loans that were void.

The CFPB alleges CashCall and Western Sky loans violated licensing requirements and/or interest-rate caps in eight states, including Arizona, Arkansas, Colorado, Indiana, Massachusetts, New Hampshire, New York, and North Carolina.

The CFPB wants CashCall to issue refunds to borrowers and pay penalties.

If CashCall or Western Sky cannot convince you to pay through standard collection tactics, such as phone calls, it may decide to file a lawsuit against you to obtain a judgment for the balance of the debt. If CashCall or Western Sky sues and obtains a judgment against you, it can then take steps to enforce the judgment as allowed by your state law. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens.

Most lenders do not sue debtors to collect debts. A lawsuit is a worst-case scenario, which you will probably not experience. However, take a moment to learn your state's collection laws so you are aware of what actions your state allows.

Repay a CashCall or Western Sky Loan?

In December 2013, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against CashCall (PDF) and its related companies Western Sky Financial and Delbert Services Corp. alleging the companies engaged in unfair, deceptive, or abusive lending and collections practices. The CFPB is asking the court to order CashCall to refund money to consumers in states where the loans were illegal, and pay penalties.

Do you need to repay a CashCall or Western Sky loan? The answer is unclear. At least five states have filed lawsuits against CashCall in 2013 for offering residents in their states loans with illegal terms. If state courts find the loans are illegal, CashCall may need to return all of the interest and fees borrowers paid to the lender. But what do the pending state and federal lawsuit mean to you if you have a CashCall or Western Sky loan now?

The Federal Trade Commission has a great list of six alternatives to high-interest loans. Explore all of your options before choosing a high-interest loan such as those offered by CashCall and Western Sky.

Take these four steps if you have a CashCall or Western Sky loan:

  1. Contact your state’s bank regulator or attorney general and ask if either believe you have an obligation to pay the loan. Your state may take the position you must repay the principal (the amount you borrowed) but not the interest. Or, your state may consider the loan illegal and therefore void, and you need not repay anything. Go to the Bills.com Loan Laws, Limits & Repayment Plans By State page to find your state’s loan regulator. In some states it is a banking regulator, and in others it is the attorney general’s office.
  2. Take careful notes of what your state officials tell you to do with your CashCall or Western Sky loan. If your state publishes any information on a Web page about CashCall or Western Sky loans, print this information and keep it in a safe place so that you have a detailed record for the future.
  3. If your state asks you to do so, file a complaint about your CashCall or Western Sky loan with your state attorney general or banking regulator. You may need file a complaint so that you are on record as being offered an illegal loan, or a loan from an unlicensed lender. Accepting an illegal loan is not a crime.
  4. File a complaint with the CFPB so that you are on record with the CFPB as having a possibly illegal loan, or a loan from an unlicensed lender.

If you have a CashCall or Western Sky loan, stay in contact with your state attorney general or banking regulator to learn if your obligation to repay the CashCall or Western Sky loan changes. Visit the CFPB’s newsroom Web page each month or so to learn if the CFPB made any announcements about its lawsuit against CashCall.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

48 Comments

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  • 35x35
    Apr, 2013
    Sheila
    I came to this page for information and really all I see is everyone in the same boat as I am with this Cash Call thing and the answers from Bills.com are not very helpful. The questions here aren't about A PAYDAY LOAN but rather about a lender (Western Sky/Cash Call) who is charging 139% interest. Yes, I think we all realized when we made this loan agreement that it was a high interest rate and we probably all thought we would have it paid off quickly but then things happen. Try paying $300 a month on a loan and only seeing only $2 go onto principal and so $298 added to your loan each month! I believe in paying off my loans and have no problem paying these people HOWEVER there as to be a way to reduce this percentage to a LEGAL limit? Isn't there? And if I had the money to "consult an attorney" as bills.com suggests...odds are I would have had enough money to begin with to either never borrow or to pay this off. Attorneys cost money. There are so many people that have been thoroughly screwed by this company that there has to be SOME governing agency out there that can help us all!
    1 Votes

    • 35x35
      Apr, 2013
      Bill
      The central issue in your question is whether the interest rates Cash Call's charges are legal under state and federal laws. The challenge to answering that question is each state has its own usury laws. This means there are about 51 answers to your question about Cash Call's interest rates. That is why we suggest readers who have usury questions to consult with a local lawyer who can review your loan contract, and apply his or her knowledge and training on your state's laws to decide if the rates and fees are legal.

      I realize Cash Call Loans are not payday loans, but the Bills.com Payday Loan Laws page contains links to each state's loan regulator. If enough residents in your state complain about a lender, the loan regulator may step in to investigate.

      You mentioned affording a lawyer. Call your county bar association and ask for the names of the local organizations that provide no-cost legal advice to people with low or no income. Make an appointment with one of the organizations, and bring all of the documents you have regarding the loan to your meeting. The lawyer you meet will advise you of your rights and liabilities.
      0 Votes

  • 35x35
    Mar, 2013
    matt
    I borrowed $1500 dollars from Western Sky also known as CASH CALL, but only received $1000. The payments were $198 dollars a month with only $36 dollars going to the principal and the rest to interest. After paying 9 months, without missing a payment and no end to paying off this highway internet robbery of a loan, I closed my checking account which stopped the deductions in their tracks. Ii also had to take a charge off hit on my credit reports from these loan sharks. They don't have a license to loan money in Texas, but they lend money anyway. They cannot garnish wages in Texas, the most they can do is charge it off on your credit report. It's a hard hit to your report and these animals know it. They fund these loans with the highest interest possible to keep you on the hook. They want to make $5000 dollars on a $1000 dollar loan. How do you expect to keep good paying customers when your robbing them with these never ending loans, my question to you western sky AKA CASH CALL is how do you all sleep at night, knowing your robbing good Americans out of their hard-earned cash? I know we borrowed the money, but to treat people like that is wrong and you know it, and you crash their credit scores along the way. Shame on you Western Sky/Cash Call.
    0 Votes

    • 35x35
      Mar, 2013
      Bill
      Your situation is another example of why it is important to know the exact terms of any loan before signing the loan agreement. A borrower should know the size of the required monthly payment and how long it will take to repay the loan given that monthly payment.

      You can file a complaint with the Texas Office of Consumer Credit Commissioner or call their consumer helpline at 800-538-1579.
      0 Votes

  • 35x35
    Jan, 2013
    Traci
    I have a loan with Cash Call. I got it back in 2006 and have been paying it since then. I believed I've paid over 11K now. I defaulted a few months ago because I couldn't keep up with the payments. They say i still owe 9K. Today I received a call stating I would be served papers at my job or I could make a payment arrangement with a company called United Capital Group. I googled them but found no information on them. I am at a loss as what to do? Any suggestions???
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      It would be helpful to know the original loan amount and the interest rate.

      Consult with a lawyer in your state who has consumer law experience. Bring all documents you have regarding the loan and your payments to your meeting so that he or she can determine if Cash Call is keeping to the promises it made in your contract. Your lawyer can also advise you if the loan is in accordance with your state's usury laws.
      0 Votes

  • 35x35
    Nov, 2012
    patrice
    I recommend no body to ever deal with cash call or any one dealing with then there are highway robbery I borrowed five hundred from another company which inturn sold my cntract to cash call and I ended up paying three times what I borrowed. This should be against the law. Now I pay them 150.00 dollars every month and the one time i need a extension they wont give it to me. They say I can pay in to installments within in the same month and they charge me an additional 70.00 on top of that. So, I'm warning that it may help you when you're in a bad shape, but they take for all you got. I so wish there was somebody that stood up to these people that take advantage of poor harmless people such as my self. January will be my last payment and they will never have to worry about unless there is someone our there that knows this is legally wrong and is willing to put a stop to cash call and it affiliates I don't think anybody wants to pay 300% interest. From someone seeking legal advice asap.
    0 Votes

  • 35x35
    Oct, 2012
    Kari
    I borrowed from Cash Call in 2006. I repaid it in full in two weeks. I needed a pay check advance for Christmas. I was aware of the horrible interest rate but knew I was repaying the loan fast. I think if you use them for short term it's OK but to pay it out is insane. They do tell you in advance though. It's not a total surprise after the fact. I was happy with the service. Honestly though, interest rates of 99% should be illegal.
    1 Votes

    • 35x35
      Apr, 2013
      Freedom
      I feel like the chains of cash call has been lifted off of me after I read this link. MUST READ. also read the Exhibit which is the letter from the Cheyenne River Sioux Tribal Court in SD, which cash call has been claiming in all their agreements that its the law the follow and the tribe DENIED HAVING ANYTHING TO DO WITH CASH CALL, FLAT OUT. I don't know how this guy manage to convince the tribe to give him a letter and how is doing it fighting cash call all by himself, but this Inetianbor guy is a freaking GENIUS man. GO MAN we all love you!!!!! http://turtletalk.files.wordpress.com/2013/04/inetianbor-motion-to-reopen-tribal-court-letter.pdf http://turtletalk.files.wordpress.com/2013/04/dct-order-granting-motion-to-reopen.pdf OR JUST GOOGLE : Inetianbor vs. Cash Call
      0 Votes

  • 35x35
    Apr, 2011
    Gaby
    First of all ,Cash Call loans are great if you need fast cash , as people are fast to get the money in 1 day they can be thinking fast on how to pay it back too!before the loan is funded every borrower is advised of contract , and cash call has many options available for the borrowers who are behind on their loan and if they need help ,but it is the borrowers who doesnt pick up the phone to discuss their loan , they are the one who lets their loan go for garnishment , they are the one who had NO intention to pay the loan back,people came to cash call to get the loan but never had the intention to pay it back!! so one piece of advise to the cash call borrowers , as you hurry to get the money hurry to pay it back , pick up the phone if you really cant afford to pay on the loan and if you really need help then pick up the phone and discuss options , because there are many option , don't hang up the phone don't ignore the calls you will get help.don't blame the one place who saved your day when you needed fast cash while you couldn't get approved anywhere else
    4 Votes

    • 35x35
      Jul, 2011
      Rudy
      Spoken like a true CashCall Collections Rep Gaby. I find it funny that so many rude people could work at one company. Cashcall is a company of parasites preying on the people in the weakest of financial situations.
      21 Votes

    • 35x35
      Jul, 2011
      So Sick of THEM!
      Hmmph....Gaby is definitely on the payroll...so Gaby what about the individual that IS NOT IN DEFAULT, NEVER BEEN LATE and still gets calls daily..is this not harassment....
      12 Votes

    • 35x35
      Sep, 2011
      Robin
      Gaby, Cashcall is a scam. You must be employed by them. BBB shows many complaints.
      9 Votes

    • 35x35
      Sep, 2011
      Person of interest
      I will have you know - regardless of what you might think, you are still subjected to the state's laws that you issue loans, so if you are issuing loans at 120 percent and the state's limit is 36%, you are in violation of the law.
      11 Votes

  • 35x35
    Dec, 2010
    See the Bills.com Debt Relief Options form and resource page to receive no-cost, no-obligation quotes from Bills.com debt relief partners.
    2 Votes

  • 35x35
    Aug, 2010
    Financially
    You shouldn't borrow from this company unless to plan to pay it back within a year(sooner if possible). This is a great program for people who are expecting money in the near future, but are not able to wait(commission, inheritance, etc). Unfortunately 90% of the borrowers default within a year and a half. Too many deadbeats out there with no money sense. Just file BK. If you can't because it's been too soon since your last BK, then shame on you for contributing to our country's problems.
    1 Votes

    • 35x35
      Jan, 2011
      Denise
      You don't know everyone's circumstances and should really watch how you judge people that you don't know. Shame on YOU for being selfish and insensitive to the needs of others.
      5 Votes

    • 35x35
      Dec, 2011
      Teri
      So you think it's selfish and inconsiderate to lend people money and expect them to pay it back? Or maybe you feel it's okay for people to ask for a loan knowing they do not and will not have the means to pay it back. I am sure you're not at the front of the line lending money to people that have no intentions of paying you back!
      2 Votes

  • 35x35
    Jul, 2010
    Bill
    I would not call the Bills.com resource CashCall Loan Collection a review exactly, but my answer to a fellow reader about CashCall discusses its business model and lower-cost alternatives to getting a loan from CashCall.
    0 Votes

    • 35x35
      May, 2013
      jUDY
      Can't ever make anyone happy. I completely understand what you're saying.
      0 Votes

  • 35x35
    Jul, 2010
    Elaine
    Is cash call a scam? Can you review what the heck cash call.com does exactly?
    2 Votes

  • 35x35
    Apr, 2010
    John
    Cash Call and businesses like it should really be illegal! They take advantage of people who are in poor financial positions and make them even worse. A loan for $5000 will cost the average person $21,000 if you pay by installments--and let's be realistic. Most people who would take out a loan from this place do not just have five thousand dollars lying around to pay it back in full. Explore all options before dealing with these people!!
    9 Votes

  • 35x35
    Mar, 2010
    Bill
    Good luck Bruce, and congrats on getting out of your high interest and high cost Cash Call loans.
    0 Votes

  • 35x35
    Mar, 2010
    bruce
    I had a loan with Cash call up until this week. I found that after 4 years and paying 251.00 a month..I still owed them what I borrowed...so..I just went to my regular bank..took out a 3 year loan..and a much better interest rate and paid off cash call..but I went there to pay it off...I did inform them...if they take out one more payment from my account...even if it is a mistake..I will charge them 100% interest...and also they will have a court date with me...and I will get back all I have paid them...just try me cash call...just try me...also...never get a loan from this company no matter how desperate you are..there are better options...lets put this place out of business...spread the word!!!
    7 Votes

  • 35x35
    Nov, 2009
    jennifer
    Our extensive financial service directory is filled with companies ready to help you with all financial related matters. You can find a financial service company by their geographic location and their category.
    0 Votes

  • 35x35
    Sep, 2009
    Bill
    Rick: Excellent negotiation suggestion. I'm glad you freed yourself from that debt.
    0 Votes

  • 35x35
    Sep, 2009
    Rick
    I had a $5,000.00 Cash Call loan around 1 1/2 yr ago. I started to pay as agreed then I ran into financial hardship and had to stop making payments for a while. Of course, it was the same old process when I stop making payments. Finally, I got a letter in the mail from Cash Call willing to settle for a lesser amount. I agreed and strated to pay them $245.00 for 6 mnths interest free and I have now finished paying them off. What I suggest you do is call them and try to reach a settlement with them, and have them break your payment into 6 mnths or so, interest free. Whatever you do, don't say that you can't pay them. Alway say that you want to and are willing to pay, but you need some assistance on their part. If they agree which I am more than sure they will, be sure to have something sent you in writing pertaining to the settlement. I hope this advice helps. Good luck.
    2 Votes

  • 35x35
    Oct, 2008
    parker
    There are state limits, but federal pre-emption allows many lenders to get around them. Cash call (or any organization) can get a bank charter or partner with a bank to offer loans to consumers. The Office of the Comptroller of the Currency and the FDIC oversee banks, which grants pre-emption from state usury caps and lending laws.
    0 Votes

  • 35x35
    Oct, 2008
    Debbie
    Is is legal for Cash Call to charge 70% interest. I thought their were state limits on interest rates.
    0 Votes

  • 35x35
    Jun, 2008
    Bill
    These loans carry a really high interest rate. If you have done your research about the rates and payment terms and are certain to keep up with the schedule, you could go ahead for the loan. Before you do sign for it, have you checked at your local banks and/or credit unions for their rates? You will likely get a lower rate at those places. If you have not done so, I highly suggest that you do, so at least then you would have looked at all of your options.
    0 Votes

  • 35x35
    Jun, 2008
    Linda
    I am about to get a loan for $1,000 from cash call, and I plan to pay it back withn 6 months what is your thought
    0 Votes

    • 35x35
      Jul, 2011
      Sandy
      Don't do it!
      5 Votes

  • 35x35
    Jun, 2008
    Stephen
    I did a loan through cash call when I got a loan through them. The payments were subtracted from my bank account every month so I dont understand why payments would be late. It was easy and I paid it back early when I was back on my feet. I guess them collections people only call u if you skip town. But that's why its called a loan I think because you have to pay it back. Them other people dont sound like they want to pay it back.
    0 Votes

  • 35x35
    Jan, 2008
    Nathan
    That is absolutely right, these loans should be used only for short term needs and that too in extreme emergencies.
    0 Votes

  • 35x35
    Jan, 2008
    Cory
    Cash Call is great company to borrower from as long as you keep the loan short term. I've received three $10,000 loans from Cash Call within the past two years. All three loans were paid in full within four months. Short term is the key here.
    0 Votes

    • 35x35
      Jan, 2011
      Debra
      Yeah right! Cory you must be on their payroll! CashCall should be shut down immediately! They prey on people who are desperate and in need of cash. They make their loans sound like a dream come true when really it's a nightmare straight from the pit of hell. CashCall are cash hogs. I had a loan from them and I was making on-time monthly payments but the balance kept rising. Finally I defaulted, changed my phone number so they couldn't call me anymore and now two year later, I disputed the charge on my credit report and it was deleted!!! THE NIGHTMARE IS FINALLY OVER and believe me I have learned my lesson. I wouldn't recommend CashCall to my worst enemy! Not only do they call and harass you, but they call and harass the people you put down as a reference every day! Just plain tacky!!!!!!
      2 Votes

    • 35x35
      Feb, 2011
      Adrian
      I only have two payments left and i will tell you that this company has no customer service skills nor any professionalism. They ask you 'where are the funds coming from', why are you behind etc, i tell them none of your f**kin business! never, never borrow from this place! I would rather do without and find some other ways to borrow money. I borrowed 2600 and have payed almost 7,000 in interest aside from the principle..I will never do that again. I even tell them two more payments and i will not have to deal with a**holes nor idiots like them anymore! good riddance!
      2 Votes

    • 35x35
      Apr, 2011
      debby
      i just got a loan from them and boy do i regret it everyone is right they do prey on people that are in a bad way. i borrowed 1500.00 from them and came out with 1000.00 and after the fact the money was put in my checking amount did i learn this.why am i paying back 500.00 that i didnt even get HOW IS THIS LEGAL TO DO TO PEOPLE. I WISH I HAD NOT GOT THIS LOAN, YOU LIVE AND LEARN.
      3 Votes

    • 35x35
      Jul, 2011
      D.
      In California, loan sharking was changed from a misdemeanor to a felony for "unlicensed institutions" back in the '70's. The key words were "unlicensed institutions." This is why it is so important to thoroughly read whatever you vote on. If you do not understand one word, look it up and check into it.
      0 Votes

  • 35x35
    Mar, 2008
    Joesph
    I too had problems with CashCall once I was late with a payment. The harassment got bad, and I was in financial hardship. There was little I could do, so instead of filing for bankruptcy I decided to do some research into debt settlement. I came across a company and they have helped me with the harassing collection calls and negotiating to pay off all my unsecured debts. Definitely an option I would suggest others look into if you are in a bad spot like I was.
    0 Votes

    • 35x35
      Dec, 2010
      Cassandra
      What is the name of the company that helped you negotiate to pay off unsecured debts?
      5 Votes

    • 35x35
      Apr, 2011
      Terri
      What is the name of the company that helped you settle your debt with Cashcall?
      6 Votes

  • 35x35
    Nov, 2007
    jennifer
    CASHCALL is NOT a payday loan lender. It is a very high interest rate, unsecured loan made to high risk clientel. When the loans default the collectors become treatening and harrass.
    1 Votes

  • 35x35
    Nov, 2007
    jennifer
    cash call is not a payday loan. it is a similar very high interest unsecured loan for high risk consumers. payments are made by ach withdrawal.
    0 Votes

  • 35x35
    Nov, 2007
    Maria
    Exhaust all your options before borrowing from this company. They are ruthless, rude and dehumanizing. They went as far as to ask me "How do you sleep at night knowing you have a debt you cannont repay. I was told that maybe I should consider ponning some of my belongings and that when I told them I was attempting to borrow the money I was told "I don't believe you!" I too offered to send a partial payment because of some financial problems and was denied as a partial payment was not an option. They treatened me and told me that "They will get there money back one way or another." I was even told by a collector that all she had to say to me was "Good luck!" They will harrass you everyday Sunday through Saturday twice a day. The funny thing is my payment is only 15 days late. Please be very careful and do everything that you can to stay away from what some people refer to as a "Legalized Loan Shark!
    3 Votes

    • 35x35
      Dec, 2010
      aa
      This company will suck you dry. Pleasssse do not get a loan from them.They will pull you deeper in a hole, they are very rude, disrespectful and no business ethics at all!
      1 Votes

  • 35x35
    Dec, 2007
    Nathen
    If you default on your payday loans, the lender can take the same action as any other unsecured creditor to enforce a defaulted debt. Generally, their collection efforts will start with telephone calls and dunning letters demanding that you pay the balance of the loan. If they cannot collect it themselves, then it is their dicretion to then transfer the debt to a collection agency. If the creditor or collection agency cannot coerce you to pay through standard collection tactics, such as repeated phone calls, the creditor may decide to file a lawsuit against you to obtain a judgment against you for the balance of the debt. If the lender sues and obtains a judgment against you, it can then take steps to enforce the judgment as allowed by your state law. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens. To find out what actions a creditor can take to enforce a judgment in your state, please visit the BCS Alliance website at http://www.bcsalliance.com/y_debt_statelaws_garnishments.html
    1 Votes

  • 35x35
    Dec, 2007
    Kelly
    Does Cash Call ever turn over the debt to an outside collection agency to collection? What recourse will they take for non-payment ? Does Cash Call ever turn over unpaid debt to a Collection Agency ? What other recourse does Cash Call take for uncollected debt?
    7 Votes