Laws in NJ about WesternSky/CashCall

Payday loans are not legal in NJ. So, this is an illegal payday loan. You'll only have to pay back the original amount.

Western Sky (the loan originator) is an illegal tribal payday lender. Given the amount you have already paid back, you just need pay $500 more and thats it. Was there any finance charges included? File a complaint with the AG and the FTC.

You also need to read this thread: http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html

Hello All,

Thank you for your responses but how do I handle CashCall? I heard they are real bears at sueing to get their money. I have to send them a letter and I would like to know the NJ Law Title codes to reference. I have a feeling that I will have my hands full with them. Has anyone from NJ had any success in dealing with thiem? If so, how.

Thanks again

Let me clear up a couple things.

1. The loan you have with WesternSky/CashCall is an installment loan, not a payday loan.

2. WesternSky is illegal because it's a tribal lender that holds no lending license.

3. They sold the loan to CashCall, which is the way they try to get around the law.

The small loan rate cap in NJ is 30% per year. If they're charging you more than that, they're breaking the law.

Dear Charles Baggaley Jr,

We are in receipt of your inquiry of May 10, 2012 regarding the above-referenced loan. We have investigated your claim and we have determined that we have accurately reported all credit information regarding the above-referenced loan. In summary, the debt is valid.

With regard to your loan, according to our records, your loan was funded by Western Sky Financial ("Western Sky") July 07, 2011, in the amount of $2,525.00, which is the loan amount of $2,600.00 minus the $75.00 Origination Fee. Western Sky is a wholly Cheyenne River Sioux Tribal Member owned business and is located and operates within the exterior boundaries of the Cheyenne River Indian Reservation. Western Sky loans are initiated, approved, issued and disbursed within the confines of the Cheyenne River Indian Reservation. Western Sky is licensed with the Cheyenne River Sioux Tribe. Western Sky does not have any physical presence in your state or any other State of the Union. The laws of the Cheyenne River Sioux Tribe apply exclusively to the terms and conditions of your loan, and you further accepted this choice of law and jurisdiction by executing your loan document. These facts were explained to you when you applied and again when you signed your Promissory Note. As a courtesy, please find attached an additional copy of your loan Note for your records.

The loan documents clearly indicate the exclusive underlying jurisdiction of the Cheyenne River Sioux Tribe and the Truth in Lending Act Disclosure Statement, stating the APR as well as the total Finance Charge. In addition, a "welcome call" is made to the debtor, during which the terms of the loan, including interest and repayment schedule, are discussed. Please see attached Western Sky Consumer Loan Agreement. According to our records, you signed your Loan Agreement on July 07, 2011 10:45 AM PST, via electronic signature, indicating that you did indeed understand the terms and conditions of the Note. The Note is in original format an electronic document fully compliant with the Electronic Signatures in Global and National Commerce Act (E-SIGN) and other applicable laws and regulations. The electronic signature on the loan document serves in the same manner as if it were a handwritten signature. On July 07, 2011 1:57 PM PST, a copy of this loan document was e-mailed to [EMAIL="chuckbaggaley@hotmail.com"]chuckbaggaley@hotmail.com[/EMAIL] provided by you.

At no time did you ever indicate that you did not understand the terms of the contract, the jurisdiction of the note, interest rate charged or total finance charge on the loan. Moreover, had you relayed an adverse financial situation to Western Sky customer service, you would have been offered a very favorable resolution despite its lawful rights to enforce the terms of your contract. Please be advised that on July 10, 2011, per the NOTICE OF ASSIGNMENT, SALE OR TRANSFER OF SERVICING RIGHTS e-mail sent to the e-mail address you provided, your loan was sold to WS Funding, LLC, and is currently being serviced by CashCall. As of the date of this letter, the payoff amount due on this loan is $3,027.55.

If you are unhappy with Western Sky, WS Funding, or your loan in any respect, we would advise you to pay it off now without penalty. Further, if you are truly experiencing financial difficulty it is strongly suggested that you contact our Customer Service department at 1-877-525-2274 and relate your situation, thereby working out a payment plan which will attempt to address your needs. Our hours of operation are 6 a.m. to 8 p.m. Pacific time Monday through Friday; 8 a.m. to 12 p.m. Pacific time Saturday.

We hope that this response has answered your questions. Please do not hesitate to contact me at 949-752-4630 if we can be of further assistance.

Sincerely,

Elissa Chavez
Dispute Resolution Department

I received the same letter and trying to figure out how to deal with WS/CC. When I called the OCCC, they told me that they were valid even though they're a "Tribal Lender".

Any suggestions?

I was thinking that since they asked for my drivers license and state issued that it would establish that I am from NJ. NJ Law does not allow small loans to exceed 30% APR and that it is WS's responsibility to either adjust the APR of the loan or cancel it.

I have received a similar response to my ACH revocation letter from a different tribal lender and I responded and told them that I am a resident of my state and my state's laws govern me. There really isn't anything they can do to you.

Prepare yourself for the calls about having you arrested for writing bad checks. And don't believe the hype. This is a civil matter, not criminal.