Consumers and regulators keep asking, “is Western Sky Financial Legal?” Our answer is, probably not in most areas of the country. Of course, just like any other predatory loan company, it takes years of litigation before they are forced into compliance with state financial service and consumer protection laws.
Instead of providing legal advice about their operations, take a look at the regulatory actions that have been filed against them so far:
Colorado Sues Western Sky Financial
In March 2011, Colorado sued Western Sky Financial and its owner Martin A. Webb. Attorney General John Struthers accused the online payday lender of charging interest rates in excess of those allowed by state statute.
Instead of charging no more than 12%, the unlicensed payday lender charged interest rates of almost 300% according to the state. Also noted was that the firm was wholly owned by Martin A. Webb, not the Cheyenne River Sioux Tribe.
Maryland sues Western Sky Financial
The state of Maryland claims Western Sky Financial and its many related entities violated the Maryland Consumer Loan Law. In addition to claims of charging usurious rates, the state also claimed that Western Sky failed to obtain the necessary state licensing. The state issued a cease and desist order to Western Sky and its owner in February, 2011.
Western Sky Financial, Owner Martin A. Webb and All Related Entities
These legal actions are the tip of the iceberg. Western Sky is finding itself on the radar of several consumer protection officials, including those in New York and West Virginia. Recent actions apply to the following entities:
- Owner Martin A. Webb
- Western Sky Financial LLC, a/k/a Western Sky Funding LLC, a/k/a Western Sky, a/k/a Westernsky.com
- Great Sky Finance LLC, a/k/a Great Sky Finance, a/k/a GS Finance, a/k/a Great Sky, d/b/a GSKY, d/b/a Great Sky Cash (a/k/a GreatSkyCash.com)
- Payday Financial LLC, d/b/a Lakota Cash (a/k/a Lakota Cash LLC, a/k/a LakotaCash.com), d/b/a Lakota Cash LLC, d/b/a Big Sky Cash (a/k/a BigSkyCash.com), d/b/a Big $ky Cash (a/k/a BigSkyCash.com), d/b/a Western Sky Financial LLC (a/k/a WesternSky.com), d/b/a Western Sky Funding LLC, d/b/a Western Sky, d/b/a Great Sky Finance LLC, d/b/a Great Sky Finance, d/b/a GS Finance, d/b/a Great Sky, d/b/a GSKY, d/b/a Great Sky Cash (a/k/a GreatSkyCash.com), d/b/a Red Stone Financial LLC, d/b/a Red River Ventures LLC, d/b/a Management Systems LLC (d/b/a GSKY)
Doing business with Western Sky or any other payday lender is risky and dangerous. Paying interest rates above 20% is never wise, and paying 15 times that in interest is downright foolish. Western Sky and its subsidiaries routinely charge usurious interest rates that exceed the state cap in several states in which it originates loans.
A major legal challenge to the claims of sovereignty is brewing. Until then, it will be up to the individual states to take legal action against Western Sky on behalf of their residents.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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