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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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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  • SS
    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

    • BA
      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.
      1 Votes

  • MG
    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

    • BA
      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.
      1 Votes

  • TM
    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

    • BA
      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

  • PR
    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

  • KJ
    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

    • FF
      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