Nobody loves a banker.
Unless you’re married to one of course.
But seriously, nobody really loves the men and women in suits who make money for “Big Money” by charging fees, paying little to no interest on savings and charging sky-high interest on credit cards and loans.
Perhaps no single person described a banker better than Mark Twain when he said, “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
In September 2010, I wrote about Western Sky Financial after seeing their commercial on television which touted a loan that is “not cheap.” (Be sure to read the blog post from back then as well as some of the comments from readers around the country weighing in on the subject.)
Now a year later, it’s time to check in with our friends at Western Sky Financial to see what they’ve been up to and if their “deal” has gotten any better.
After visiting their website, it seems as though they are now trying to make it perfectly clear that they are not owned by the Cheyenne River Sioux Tribe, but one of their Tribal Members by displaying a disclaimer that appears on each page of their website:
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.
I can only speculate that Tribe itself was gaining some unintended publicity and wanted to clearly distance themselves from the one Tribal Member who is making a killing off of unsuspecting individuals who opt for one of their high-priced loans.
At last writing, the interest rate for a $2,600 loan was at 139% APR. That remains the same a year later, but interest on a $1,500 loan shot up from 194% to a mind-boggling 234%. New on the menu is a $5,075 loan what will cost the lucky borrower just 116% interest.
Those who wish to apply for a Western Sky Financial screwing (aka “loan”) should note that on the first page of the online application, you are consenting to be bound not by the laws of the United States of America, but by the laws of the Cheyenne River Sioux Tribe:
Western Sky Financial, LLC, is a Native American-owned business operating within the boundaries of the Cheyenne River Sioux Reservation, a sovereign nation located within the United States of America.
By using our website, you are conducting business on the Cheyenne River Indian Reservation and are subjecting yourself exclusively to the laws and jurisdiction of the Cheyenne River Sioux Tribe, a Sovereign Native American Nation.
Additionally, they point out that “no other state or federal law or regulation shall apply to this Loan Agreement” in their terms which are available online:
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.
Granted, these types of loans exist for a very specific type of client and for many, may actually be cheaper than other payday loans. But it’s important to point out the facts surrounding these types of loans that many individuals may not be fully aware of, such as being bound by laws of an Indian Tribe rather than the United States of America.
Unfortunately companies like Western Sky Financial exist because somewhere it just started raining and a guy in a blue suit just stole someone’s umbrella.