What kind of company is Western Sky Financial?

Overview of Western Sky Financial

Western Sky Financial LLC was a payday lending company based in South Dakota , USA. The company offered short-term loans of up to $10,000 to individuals, claiming to provide an alternative to traditional payday loans. Western Sky Financial became well-known for its TV commercials, which featured the tagline “get up to $10,000 in your checking account tomorrow” and promised quick access to cash for those in need.

Legal Troubles and Shutdown

In recent years, Western Sky Financial faced numerous legal challenges from state governments and consumer protection agencies over allegations of predatory lending practices and charging exorbitant interest rates. In 2013, the company announced that it would stop funding loans due to increased regulatory pressure.

The company's lending practices were also challenged by Native American tribes as Western Sky Financial partnered with several tribes to avoid state regulations. A number of tribes severed their relationships with Western Sky following the mounting legal action against the company.

Settlements with Regulators

Western Sky Financial and its parent company, CashCall, reached a settlement with Washington State in 2015, agreeing to provide refunds to Washingtonians who paid more than the state's interest rate cap of 12% APR. The company also agreed to pay a $1 million fine to the state.

Conclusion

While Western Sky Financial gained notoriety for its aggressive advertising tactics and high-interest loans, it ultimately faced significant legal challenges and scrutiny from regulators and consumer advocates. The company's troubles are a reminder for borrowers to carefully consider the terms of any loan they take out and to be vigilant about predatory lending practices.