Legality of Western Sky Wage Garnishments Disputed by State Regulators
By [URL="http://www.kennethlong.com/"]Kenneth Long[/URL] on September 12, 2012
OK so you were dumb enough to sign up for a Western Sky Financial loan and find that you cannot afford to repay it. Big surprise right? Now that the firm has obtained a judgment against you in tribal court, they have provided your employer with a garnishment notice. Here's a case for ignoring that notice.
Sure Western Sky reserves the right to offer usurious loans. They have the right to pursue a judgment against you if you breach the loan contract. They even have the right to pursue a garnishment. All of these rights are available to them through the tribal court.
The trouble is, you are probably not a tribal member. The loan was not made on a tribal reservation. And guess what, you are likely not bound by tribal law either. Despite the claims of tribal sovereignty, regulators have ruled that Western Sky and related lenders [URL="http://debtorsunite.com/Blog/Debtors-Fight-Back/April-2012/Tribal-Payday-Lenders-Are-Not-Exempt-from-Federal-.aspx"]are not exempt from federal regulations[/URL].
That is the basis of several lawsuits [URL="http://debtorsunite.com/Blog/Debtors-Fight-Back/April-2012/Western-Sky-Financial-Sued-by-FTC-for-Illegal-Garn.aspx"]filed by the Federal Trade Commission[/URL], the State of Maryland and other states. They are protesting what have been deemed illegal loans by Western Sky Financial, Lakota Cash as well as several other high interest payday loan operations controlled by Martin Webb.
Complaints allege that the lenders have illegally sent garnishment orders to employers that mimic those sent from the federal government. Garnishment of wages for private debts is not permissible until a court order has been obtained.
If your employer has received a garnishment order for one of these loans, it may be worth contacting the attorney general for your state. Find out if the garnishment order is legitimate. You may actually have more protections from the lender than you might think.
Finally, do yourself a favor and never agree to such a stupid loan product ever again. Maybe you were desperate. Perhaps you were lured in by the [URL="http://debtorsunite.com/forums.aspx?forumid=10&threadid=275"]cute Western Sky spokesperson[/URL]. Whatever the case, you cannot afford to throw your money away on such a dumb product. Stick with your credit union for loan needs and make sure that you stay employed. A loan is no substitute for income.