Western Sky Loans? Friend took one out in California, is she screwed?

[Jenn]

My friend lives in California, and we were talking about this last night- but I have no clue. I did some online research but I don't know anything about them or the laws so I thought I could post it here and maybe someone would know.
a friend of mine took out one of those horribly expensive loans from Western Sky. You may have seen the commercials, they are such a scam, and she was in such need I guess she didnt really think too much into it.
Anyway, she is now terrified as she has lost her job and the payments are something like 268 a month- which she cannot pay. They (western sky) told her that she cannot file bk and include them as they are an Indian reservation and a sovereign nation- is this true? How can a company lock people into a loan with no way out? Anyway, I have found no answers online and thought I would ask here. Thanks..
here is the link for the site

http://www.westernsky.com/

[IamOld]

These are "rent a reservation" outfits - they "rent" the Indian Reservation mailing address - but even if they're real, the issue is moot because - yes, Indian Reservations are sovereign nations, BUT whether that allows them to escape fed law of this kind is way way way over my paygrade.

BUT - the BK court - in my humble opinion will prevent them from using US/state/local courts etc to collect on this. So your friend is NOT out of luck.

IN ADDITION - and there is plenty of case law on this from fed courts and many state courts, that put an end of out of state/country illegal payday lending. OR's laws are here - http://dfcs.oregon.gov/pdf/2938.pdf

Now, clearly Westernsky has disguised itself as NOT a payday lender, but they are - if you borrow 2500 you'll pay back over $13 THOUSAND!!! I think a good argument can be made that they "entered" the state of OR via the web,and thus violated the OR payday lending laws, and, therefore, their contract is null and void.

If your friend has at least paid for several months, I think eitehr BK OR!! a good consumer rights atty and or a complaint to the AG's office in OR could make this go away.

[Pandora]

They should be shut down for extortion! HOLY MOLY!

[IamOld]

agreed!!!!!! Tony Soprano has better terms!

[kjrmom911]

Holy Crap. Does that repayment rate really say 194% . That should be illegal!

[IamOld]

Holy Crap. Does that repayment rate really say 194% . That should be illegal!

Guys, believe it or not before the 80's it WAS illegal. In many states - including mine, it is illegal (thank you former NYS atty gen Spitzer for taking on these guys AND the WV AG for example!!!) - and the contract is unenforceable. OP may want to ask the AG's office in OR what their position is on such loans made to citizens of their own state.

NOW - these firms will bark VERY VERY loudly and threaten you etc, but you cannot budge!!!!!!!!

[debee]

Mr. ---- is lying through his teeth. His entity is licensed under the auspices of the good State of South Dakota. "Soverign Nation", my a_ _.

See:

http://apps.sd.gov/applications/ST32Cprs/AllDocuments.aspx?&BID=DL018925&query=western+sky

Get him to put something in writing and take it to the State Attorney General for consumer fraud prosecution.

Des.

(The above response was copied from another website. Good info for anyone who finds themselves in the same shoes as OP's friend.)

[IamOld]

Excellent work debee!

Then the OP can tell them to go stick it absolutely - they are operating within OR without a license. End of story.

Mr. ---- is lying through his teeth. His entity is licensed under the auspices of the good State of South Dakota. "Soverign Nation", my a_ _.

See:

http://apps.sd.gov/applications/ST32Cprs/AllDocuments.aspx?&BID=DL018925&query=western+sky

Get him to put something in writing and take it to the State Attorney General for consumer fraud prosecution.

Des.

(The above response was copied from another website. Good info for anyone who finds themselves in the same shoes as OP's friend.)

[debee]

Excellent work debee!

Nah. I just googled my way to some of Des' excellent work.

"You can't include this debt in bk because we are a sovereign nation" sounds like a good square for catleg's Collection Bingo game.

[IamOld]

Indeed!!!!

Nah. I just googled my way to some of Des' excellent work.

"You can't include this debt in bk because we are a sovereign nation" sounds like a good square for catleg's Collection Bingo game.

[despritfreya]

Mr. ---- is lying through his teeth. . .(The above response was copied from another website. Good info for anyone who finds themselves in the same shoes as OP's friend.)

debee. . . just gotta sat it.

Thought I was seeing double or maybe sleepwalking as I did not remember posting this response on this forum - but those senior moments come more frequently now. Thanks for posting that it was from another web site. . . now I can relax

Des.

[Goteki45]

Their commerical is funny, but I wouldn't never do business with. They claim to be better then using payday loan provider. They both are snakes that prey on people in desperate situations.