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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
(32 Votes)

Woman receives bad phone call | Cash Call Loan

  • 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 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.



(32 Votes)
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  • HG
    Feb, 2016

    Who can I call for California? I recently got a call from a law office about this silly loan that i took out back in 2013, they wouldnt work with me when i got laid off so i ended up stopping payment and forgot about it. Well i got a call recently that now it is up to 8K (from the original loan of 2500) i told them I would pay if they got rid of the interest but they wont. And they say they will garnish my wages at 600 bucks. Who can I call in the state of California about this?? Any help would be great.

    0 Votes

  • JC
    Feb, 2015

    I live in NH and discovered the Cease and Desist order sent by the NH Department of Banking. I spoke with a representative who told me to no longer make payments, cancel the bank account and to file a complaint with them, the FTC and the CFPB. I sent them all the information I had including the original loan agreement, the payment history, correspondence from Cashcall, Dilbert Services and Western Sky. They will update me to let me know if I can expect any refund money. I asked what could I do if Cash Call tries to report me to credit bureaus. They recommended I send all the information I have (the Cease and Desist Order, NH statutes on Loan Interest limitations, and inform the bureau that the state is in litigation with the company and that the state considers the loans invalid. I'll update you on the situation.

    0 Votes

    • 35x35
      Feb, 2015

      Great information. Thank you for sharing!

      0 Votes

    • NM
      Jan, 2016

      What was the outcome? I am in NJ trying to get out of one of these loans. It has been paid 3x over already. I'd love to know what happened with your situation.

      0 Votes

  • BL
    Nov, 2014
    I have been paying my loan for over 2 yrs. The state I live in just reached a settlement w/ cashcall where cashcall has to pay $1.5 mil for illegal loans/fees. Do I need to continue make payments or should I wait?
    0 Votes

    • 35x35
      Nov, 2014
      Contact your State's Attorney General, to find out whether you need to continue making payments.
      0 Votes

  • EM
    May, 2014
    Wendell, North Carolina
    I received a notice from Delbert Co. that represented CashCall/Western Sky and I received a letter from a law firm in D.C. to pay 10% of my original loan amount and my account would close and I could file my taxes to forgive what's called a cancellation of debt. After I paid it the state I reside in ( North Carolina) A.G. with other states filed a lawsuit against CashCall back in December 2013. I recently viewed my credit report and it has not been removed. I have no idea when the lawsuit will be settled, however I did receive a letter from the office of the A.G. office from the state of NC back in March 2014, stating it's getting close to being resolved or it may face a trial.
    0 Votes

  • WH
    Apr, 2014
    Steubenville, OH
    I have a Western Sky loan for $10,000 that I have been paying on since October of 2012. I filed a complaint with the CFPB and I received a response from Western Sky that had nothing to do with my complaint. I have since disputed their response and am now awaiting a reply. I have also contacted the Ohio AG's office and I received a lame response that said that Western Sky is a Native American owned business and that I should contact the Bureau of Indian Affairs. The response from the AG's staff also contained this line: "The Attorney General's office is the legal representative for the state and all its departments, boards and commissions under R.C.109.02." I took that to mean that they don't represent me, the taxpaying citizen. I followed up by contacting an investigator in the AG's office who I know professionally, and he has never returned my calls or emails. There are currently 28 complaints listed on the Ohio AG's website against Western Sky. About 90% of those complaints are listed as being referred to another agency for resolution. Unfortunately that other agency appears to be the Bureau of Indian Affairs! The bottom line, unless everyone in Ohio starts contacting the AG's office about this company, and keeps contacting them until they get an answer, this issue will never be dealt with in Ohio. Mike Dewine's office apparently has very little interest in helping the citizens of Ohio like the AG's in other states have done.
    0 Votes

    • JB
      Apr, 2014
      Elyria Township, OH
      From what I read, all these lenders need to be licensed in Ohio to make a loan. Otherwise the loans are illegal. Check with an Ohio attorney about this.
      0 Votes