Western Sky On-Line Payday Lender To Stop Making Loans!
I have written about payday loans many times and it always disturbs me to see what sharks these guys are. As a bankruptcy lawyer in New Jersey, I often see people who are in financial distress turn to some pretty unsavory companies. Payday lenders are the scum of the earth and the damage inflicted because of such loans is nothing short of terrible.
Lately, there has been a good deal of press about payday lenders with several states launching investigations and other actions. Today, one of those companies, Western Sky Financial, says it will stop making loans. As reported in The Washington Post and other news services that Western Sky will no longer be making their ultra high-interest loans after September 3 as a result of government enforcement actions.
As being reported in the Wall Street Journal, several states have filed enforcement actions against Western Sky alleging that its loans violate state licensing and lending laws. Western Sky contended that it was entitled to tribal immunity because one of its owners is a member of the Cheyenne River Sioux tribe. To date, every court that has considered this proposition has rejected Western Sky’s claim that it is entitled to tribal immunity.
Unfortunately, even though Western Sky says it will stop making loans, there are a large number of “loans” still outstanding. If you have a payday loan from an out-of-state lender or an online lender, you should consult with a lawyer in your area to see if that loan is also illegal.
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