Western Sky Financial had been a mortgage lender that charged fees that are exorbitant interest levels on loans, and ceased operations. Even though company is no more making loans, the storyline of Western Sky's loan procedure is one which shows exactly how dangerous high-interest financing, like "payday loans," can be.
Western Sky's "loan services and products" Unlike many high-interest loan providers, such as for example payday and title loan providers ( more on them later), Western Sky had been based in the boundaries associated with Cheyenne River Indian Reservation and was not at the mercy of U.S. laws and regulations regulating loans that are high-interest. Therefore, they certainly were able to utilize uncommon loan terms -- at the very least for a time.
Whereas many lending that is high-interest done for short period of time durations -- such as for example 31 times or less -- Western Sky's loans included terms including one year to seven years. Rates of interest depended in the particular loan terms, however the typical rate of interest for a Western Sky loan had been 135%.