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Legality of Western Sky Wage Garnishments Disputed by State Regulators
By [URL=""]Kenneth Long[/URL] on September 12, 2012

OK so you were dumb enough to sign up for a Western Sky Financial loan and find that you cannot afford to repay it. Big surprise right? Now that the firm has obtained a judgment against you in tribal court, they have provided your employer with a garnishment notice. Here's a case for ignoring that notice.

Sure Western Sky reserves the right to offer usurious loans. They have the right to pursue a judgment against you if you breach the loan contract. They even have the right to pursue a garnishment. All of these rights are available to them through the tribal court.

The trouble is, you are probably not a tribal member. The loan was not made on a tribal reservation. And guess what, you are likely not bound by tribal law either. Despite the claims of tribal sovereignty, regulators have ruled that Western Sky and related lenders [URL=""]are not exempt from federal regulations[/URL].

That is the basis of several lawsuits [URL=""]filed by the Federal Trade Commission[/URL], the State of Maryland and other states. They are protesting what have been deemed illegal loans by Western Sky Financial, Lakota Cash as well as several other high interest payday loan operations controlled by Martin Webb.

Complaints allege that the lenders have illegally sent garnishment orders to employers that mimic those sent from the federal government. Garnishment of wages for private debts is not permissible until a court order has been obtained.

If your employer has received a garnishment order for one of these loans, it may be worth contacting the attorney general for your state. Find out if the garnishment order is legitimate. You may actually have more protections from the lender than you might think.

Finally, do yourself a favor and never agree to such a stupid loan product ever again. Maybe you were desperate. Perhaps you were lured in by the [URL=""]cute Western Sky spokesperson[/URL]. Whatever the case, you cannot afford to throw your money away on such a dumb product. Stick with your credit union for loan needs and make sure that you stay employed. A loan is no substitute for income.

Thanks for sharing the article. :)

Sub: #1 posted on Mon, 03/18/2013 - 20:59

ditchdebt ditchdebt

(Posts: 678 | Credits: )

If you are dealing with Cash Call on the legality of loans issued by Western Sky, please read this. A victim in Florida sued Cash Call and they attempted to do their normal bullying to have the case removed to federal district court so they could use the whole tirbal immunity to have the case dismissed. It looked like CC was going to get their way when the court ordered the victim to abide by the arbitration clause in the loan documents. So, he contacted the Cheyenne River Sioux Tribal Court to schedule arbitration. And he received a letter back from the CRST Magistrate that they don't arbitrate these matters. So, it would seem that the defense CashCall uses to have ALL lawsuits harassed victims file against them regarding these illegal loans dismissed by claiming that everyone is bound to the "arbitration agreement" set forth in the loan documents is unenforceable. This is a huge development! He was able to get the court to reopen his case. Can't wait to see how that plays out!

Sub: #2 posted on Mon, 04/15/2013 - 13:44

momofthree27 momofthree27

(Posts: 358 | Credits: )

I found out after the fact of taking out a 5,000 loan they crazy interest they where charging me. for over a year I paid $500 a month and go no where.. i tried on consolidation and they couldnt settle than I tried 123settlement they were able to stop the collection calls and set up a small payment

Sub: #3 posted on Thu, 04/18/2013 - 07:24


If you borrowed from Western Sky and you paid over $500 a month for 12 months - you paid back $6000 on a $5000 loan - they owed you a refund of $1000. So why would you have paid them any thing else?

Sub: #4 posted on Thu, 04/18/2013 - 16:32

HelpinAZ HelpinAZ
(Posts: 1873 | Credits: )

My loan from Western Sky was immediately sold to Cash Call with an Anaheim, CA address. Based on my research, I think they are still claiming to be tribal? They are not licensed here in Oregon.

I had to renegotiate with them in March when I couldn't make a payment. The state of Oregon has issued a cease and desist order again Western Sky, however since I have had dealings with Cash Call directly since the original loan would this apply to me? I owe $209 on the principal, which I am willing to pay.

I have already closed my bank account.

I would appreciate any input/advice.

Sub: #5 posted on Tue, 05/07/2013 - 20:01

halayku halayku

(Posts: 3 | Credits: )

If your loan was originally from Western Sky then you should send them a letter revoking ACH and notifying them of the ban in your state, etc. Since you probably signed a remodification agreement with Cash Call, they will probably try to say that it doesn't apply, blah, blah. It will be interesting to see how they reply - whether they claim to have immunity to state laws or what they will use. Keep us posted. With more and more states declaring their loans illegal and more and more people revoking access to their bank accounts, Cash Call (who is the real puppet master behind these Western Sky loans) has got to be feeling the pinch....

Sub: #6 posted on Wed, 05/08/2013 - 05:52

momofthree27 momofthree27

(Posts: 358 | Credits: )

So I took out a loan with western sky. Did my homework afterwards. I found out how much I would pay back. Was wondering if it is legal in Ohio? Of course loan was turned over to cash call... I sent a letter of debt validation to them on 5-10-13 I got the loan of 2600 on 4-16-13. I sent it certified mail. Why can I do I'm stuck and scared...

Sub: #7 posted on Sun, 05/12/2013 - 08:01


@Bryan - Online lenders must be licensed in Ohio. - You can check here Ohio Division of Financial Institutions to see if they are if you want to confirm.. But, Western Sky is a tribal lender not licensed in Ohio to lend.. Cash Call is only servicing the loan. You are only morally obligated to repay principal balance only on your own terms. You will want to follow this link on how to deal with - step by step - all are important.. th-illegallende... - Cash call will try to drag out and we will be here to help. important to stay off phone with them.

Sub: #8 posted on Sun, 05/12/2013 - 13:20

HelpinAZ HelpinAZ
(Posts: 1873 | Credits: )

So, as you suggested, I sent an email to both Western Sky/Cash Call. I also sent the same email to North Cash, a second lender that I have paid $1295 on a $300 loan. No response from North Cash. My scanner is not cooperating tonight, so I have typed up the letter I received from Cash Call. Surprisingly, they have not called my phone as of yet. I apologize in advance for the length, but would welcome the opinions of those that have much more knowledge than I do in dealing with them.

I am willing to pay the remaining $209 principal balance to them, although I was advised that I was not obligated to do so under Oregon law. The letter I sent was copied from this board, stating that they are not licensed in the state of Oregon and therefore the loan was not legal.

This letter is being sent in response to your inquiry of May 14th, 2013 in regards to the interest rate charged in conjunction with your loan.

Your loan was funded by Western Sky Financial ("Western Sky") on June 27, 2012, in the amount of $2525.00, which is the loan amount of $2600.00 minus the $75.00 Prepaid Finance Charge/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 id 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 you loan Note for your records.

Please also be advised that on June 30,2012, PER NOTICE OF ASSIGNMENT, SALE OR TRANSFER RIGHTS email sent to the email you provided, your loan was sold to WS Funding, LLC, and is currently being serviced by CashCall. If you have any questions regarding your current loan, current balance, or payoff amount, you may call our Customer Service Department at 1-877-525-2274. Our hours of operation are 6am to 8pm Pacific time Monday through Friday:6am to 12pm Pacific time Saturday. 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.

We hope this has answered your questions. Please do not hesitate to contact us if we can be of any further assistance.


Customer Service

CashCall, Inc.


Sub: #9 posted on Mon, 05/20/2013 - 20:14

halayku halayku

(Posts: 3 | Credits: )

This is the normal response everyone receives from them once they revoke ACH. What I would do is reply back to them including copies of this "oregonlive(dot)com/finance/index(dot)ssf/2013/04/oregon_fines_native_am erican_o(dot)html"

Make sure contact the Oregon Department of Consumer Finance ASAP -- they may be able to provide you with a letter or some documentation of some sort to send to Cash Call as well as to fight the credit reporting agencies in allowing this item to report on your credit report. Your state has shut them down and they know that -- make sure that you make it clear that YOU know it as well. Take a hard stance with these people and do not let them scare you with their crap.

Sub: #10 posted on Tue, 05/21/2013 - 10:32

momofthree27 momofthree27

(Posts: 358 | Credits: )

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