Need some good sound financial advice...
Date: Sun, 09/09/2012 - 19:40
89%!! What in the world was I thinking?! All I could think about was how desperate I felt at the time. All I needed was $3000 to pay off another debt that I was four payments behind on but the rep at Western Sky convinced me to take the $10,000 loan and pay back $7000 right away (no penalties for early pay off) and I should have the rest paid back in just a few months as long as I pay the minimum of $743.49 a month. I did pay $6000 back immediately thinking it would be about the same as sending $7000. (I used the other $1000 to help with other bills and groceries, etc.) I was wrong. It's going to take about a year.
What I'm worried about is the high payment and most of it going to interest. It's criminal but yet I'm the one who gave them permission to rob me. I've never been very good at managing my finances and I've been in debt most my adult life starting at age 18 to now 46. I really don't make that much money and my credit is really bad. The only reason they loaned me that much was because back when I did have good credit and made better money they approved a loan for me (CashCall at the time) for 10k at 39% interest. I took that loan and actually paid it off in a timely manner. (I got lucky and hit a windfall at a casino for $10,000 and paid the remaining amount I owed with that money. It was about $6000 I owed by that time. That was over 7 years ago. Were it not for that win I would still be paying on that loan to this day.)
Well, This is just awful what I've done. I'm thinking about bankruptcy bc my credit is already shot bc I haven't made any credit card payments in years. After I lost my good paying job back in 2008 I've been struggling to find full time work. I am working part time and sometimes like during holidays I get to work more hours but I don't think it's going to be enough to make that high monthly payment plus all my other bills. I just paid off my car with the Western Sky loan (I was afraid they would repossess since I was going on 4 payments behind). I feel so stupid and now I'm trapped worse than if I had just called the car loan company and made arrangements with them and continued to pay $390 a month. Sheesh... I thought that was hard enough!! I'm an idiot!!!
btw... Western Sky sold my loan to CashCall I guess making it legal in Nevada? I'm really not sure how all that works but I really don't know how this could be legal or how they get away with it. I plan on at least paying back the $4000 more that I still I owe.... but I would love to find a way out of paying all that interest. Maybe through another loan??? It's always one debt after another for me.... how do I end this vicious cycle in my life?
It doesn't matter if they sold it to a legal lender. If the loan
It doesn't matter if they sold it to a legal lender. If the loan was originated through Western Sky, it is illegal. It's like committing murder with a cop's gun. Refer back to the old loan agreement and make sure it says Western Sky and not CashCall. You need to confirm this if you want to go after them. Just because you called Western Sky does not mean it was processed through them. For example if I call Western Sky's number in California and ask for a loan, they will process the whole thing via CashCall. Once you have confirmed this we will set you up with who to contact at CashCall as well as what to say.
I am thinking it is illegal as it seems a Nevada resident applying for a loan is underwritten through CashCall-
You have selected Nevada as your home state.
Please note that your loan will be underwritten and funded by Western Sky, P.O. Box 370, Timber Lake, South Dakota.
But please confirm that with us before we proceed!
Tribal lenders like Western Sky are completely unregulated which
Tribal lenders like Western Sky are completely unregulated which would explain the 89 percent interest rate. In this case the loan seems to have been originated by WS, thereby making it illegal. You need to start by revoking ACH authorization immediately.
Wow! Sounds like there may be some hope. I just want to be sur
Wow! Sounds like there may be some hope. I just want to be sure I understand what you are asking, Waffles. The old, original loan... back in 2006 was completely through CashCall. That loan was paid off after about a year. This new loan I just obtained through Western Sky. I called Western Sky after I received an advertisement in the mail. They said on the phone, after they got all my information, that I was in good standing with them because I had paid off a prior loan with CashCall. I think somewhere in that conversation he mention they were a sister company of CashCall or something. So, this present loan originated through Western Sky and was sold to CashCall. I did not see any statement that said anything about me being a Nevada resident and therefore will be underwritten by Western Sky or CashCall, etc. I did see one for California residents, though.
Also, reading through the agreement for both CashCall and Western Sky this loan is fully governed by the Cheyenne River tribe (or whatever they're called) and they said no other state of federal government laws apply. (ie... my government cannot help me out should I default on this loan.) Should I default then they can demand payment in full immediately and or go through arbitration through their tribe.... yada yada yada. They basically said that a lawyer and claiming bankruptcy would never be possible. Not sure I understand all that but it pretty much seems there's no way out for me. It all looks so official and legal. Where is the loophole? HELP!
Thank you Waffles and others for your help...
I did notice that I did not mark the box on the agreement that allows them to automatically debit my bank account for payment. Although, they do have that information as I gave them permission to ACH debit my account for that first $6000 I immediately paid back. So if I stop making payments I'm assuming they will use that info to start trying to collect as well as garnishing my wages.
I'm still thinking I would like to get a lawyer and file for bankruptcy (most likely chapter 13 as I believe in paying my debts but I just need to consolidate with a reasonable lower interest and payment amount so I can have money to live on. Ya know?) I've been thinking about doing this for a long time as I got so caught up in the credit card scams where I would try to consolidate and would just end up with more credit cards and more payments. After many times of believing they would consolidate and ending up with about six credit cards, for years I could only pay the minimum amount due on each card. So I stopped paying (as per free advice from a lawyer that I may use for my bankruptcy) and would never answer their calls and I don't feel one bit guilty because I know they took advantage of me and I've most likely paid them in interest 10 times what I borrowed originally. (especially Chase bc 3 times they said they would transfer balances from other cards for me and consolidate and ended up only doing partial transfers thus out of the 6 cards three were from Chase and they wouldn't consolidate their own damn cards!) I was naive and stupid and duped!
Well, I always have learned the hard way with most things in life... guess it's just my personality type but this financial stuff has been the hardest over all! I'm so tired of it! I need to smarten up and believing I learned my lesson I think I should start fresh with a chapter 9 or 13. Thinking I'll save my money and get a lawyer rather than pay any more to CashCall. As you can see I need lots of advice. Thank you all for your help and input! :rose:
The loophole is that their contract is only enforceable on their
The loophole is that their contract is only enforceable on their tribal lands. Since you're not a member of their tribe, their laws don't apply to you. The contract is invalid in your state.
Hi annonymous
Just to be sure... are you saying that because WS is tribal then that makes it illegal anywhere outside the tribe and in any state? And even though CashCall bought the loan it is still illegal, right? So... I should close my bank account immediately and get another one and that's it? Should I send them an email or letter, as other advisors on this site have suggested, and let them know that I plan on paying back the principal amount only and will do so on my terms and at my liesure? What if all I do is close my bank account, never send them a letter or email, and just ignore their calls for the rest of my life? They can't do anything but make idle threats. Correct? Is this all I need to know? Is it really that simple? I want to believe it. It seems so hard to believe.
Thank you for your help. Much appreciated!
WS is illegal even though Cash Call services it. The loan origin
WS is illegal even though Cash Call services it. The loan originated with WS. Close your bank account immediately, open a new one and do not give out this info to anyone. We do suggest paying back the principal amount borrowed. You need to decide how you want to handle.
Yes, send them an email after you close your account. You can
Yes, send them an email after you close your account.
You can follow the same steps outlined in my signature link for illegal PDLs, just tailor it to fit your situation (e.g. the loan being illegal/unenforceable due to its tribal nature).