Will they really put up to $10,000 in your bank account by tomorrow, just by trusting you? What do you think?
If you take up Western Sky Financial on its offer, then you are in for a rude awakening. This is what you are subjecting yourself to:
An initial $75 fee is paid to Western Sky. Then $9,925 is put in your checking account. Then you simply make 84 monthly payments of $743.49. If you do the math on all of the fees and interest, it totals to $62,528.16.
Let’s say that after a year of making payments, you realize the futility of trying to repay a 89.68% APR loan over several years. You can call Western Sky to determine what the payoff will be. After 1 year, you would still owe about $9,893.
After paying $8921.88 towards your $9,925 initial loan balance, you would have only paid off about $32. That’s THIRTY TWO dollars in principal, after paying EIGHT THOUSAND NINE HUNDRED TWENTY ONE dollars and some change. Now that’s not really solving any problems is it?
Still an unbelievable number of people are looking for Western Sky holiday loans to give them money to spend on Christmas gifts and other seasonal items. These are the same households that can least afford to repay a predatory loan.
A family that takes out this loan will undoubtedly experience substantial difficulty in trying to repay it. That’s when they can expect to receive countless collection attempts by California-based Cash Call, who is responsible for servicing the loans. If the loan falls 6 months delinquent, then it may be sold to any number of third-party debt collectors.
However, that is not the main problem here. What many debtors are experiencing is a court judgment against them, along with a wage garnishment order sent to their employer. Most employers will heed those garnishment orders, since they don’t realize that the garnishment orders may be illegal. Maryland is one of many states in addition to the FTC to dispute what they call illegal garnishment orders by the predatory lender.
Despite all of the actions against the tribal firm, hundreds of desperate victims continue to flock to these loans. Perhaps they are mesmerized by all of the smoke and mirrors.
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!
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."