Sunday, March 18, 2012

Indian Loans

There are days when I think Delmar is the center of the “get cash fast” businesses. Another “get cash fast” business I have seen on TV recently is the Western Sky Financial commercial that starts out with;

How would you like up to $2500.00 almost instantly? Here at Western Sky Financial, we'll lend you this money almost instantly and with no collateral whatsoever. Sure, it's expensive, ....... Call us now.”

A Indian (for those who are politically correct - Native American) Loan company! Looking at their website it says;

WESTERN SKY FINANCIAL is owned wholly by an individual Tribal Member of the Cheyenne River Sioux Tribe and is not owned or operated by the Cheyenne River Sioux Tribe or any of its political subdivisions. WESTERN SKY FINANCIAL is a Native American business operating within the exterior boundaries of the Cheyenne River Sioux Reservation, a sovereign nation located within the United States of America.

Sovereign nation?

According to that well known authority Wikipedia The federal government recognizes tribal nations as "domestic dependent nations", close enough for me.

Anyway it is another loan company that avoids state interest rates laws by operating in a "Sovereign nation." Now I don't know how much of it is "Indian" owned, it may be like the "Indian" Casinos that are mainly owned by people in Hong Kong and Singapore, maybe with some front people that are Indians. Actually I understand once the loan is taken out it is "sold" to a nationwide pay day loan company.

These loan companies stay in business because there is a demand for them. Much like the poor credit habits of the United States Government, people are use to borrowing money and not caring what the interest rate is. Many have now reached the point where they are at the end of their rope; house about to be reprocessed, unemployed, utilities cut off yet they seem to think something will save them so they take a loan out at 300% interest. Maybe they think that long shot at the horse race will come in and they can pay it off.

What do their interest rate look like? A $2,600 loan, the annual percentage interest rate is 139.34% and is set up for 36 months, that is well over 10,000 dollars for a 2,600 dollar loan (amount of $2,525.00, which is the loan amount of $2,600.00 minus the $75.00 Prepaid Finance Charge/Origination Fee). The second loan is a $1,500 loan with a APR of 199.98 percent, a little over 7,000 dollars if the applicant takes the full three years to pay it back.

Plus this little disclaimer is thrown in;

"All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit. If you do not wish your account to be subject to this arbitration agreement, you must advise us in writing. It is not sufficient to telephone us. we must receive your letter or e-mail within sixty (60) days after the date your loan funds or your rejection of arbitration will not be effective. in the event you opt out of arbitration, any disputes hereunder shall nonetheless be governed under the laws of the Cheyenne River Sioux Tribal Nation."

Anyway Indian No Speak With Forked tongue, Information All There, If You want to Be a fool Go For It.

No comments: