Based on what Mr. Chasing Hawk said in his recorded conversation with Mr. Inetianbor, it would appear that NONE of the agreements issued by Western Sky would be valid in any state since he clearly stated that Western Sky is a PRIVATE company and the tribe has nothing to do with this business. Further, Western Sky is a South Dakota company. It is the equivalent of me doing business from New Jersey, being certified as a business in New Jersey and then applying Delaware law to the contract. What is even more troublesome is that the Tribe has their own usury laws so he is unable to lend to members of his own tribe. With all of this new information piling up how can he honestly think that what he was doing was “legal”? Every single contract ever produced is filled with illegal jurisdictions AND every single one was always done outside the reservation. However, Cash Call is the true lender which various States are finding out. I hope the indemnity clause holds up for Western Sky….not really…..Mr. Webb chose to do business this way knowing full well that its purpose was to evade all of the States with usury laws, supervised lending, payday loan laws. Also. I am quite certain that Mr. Webb knew that Paul Reddam had already been sued for his rent-a-bank scheme and the courts deemed Cash Call as the de facto lender in those arrangements. I do feel bad for the Tribe itself since it is their name and reputation being dragged through the mud. They should not have to be in the spotlight like this because of a greedy and deceptive tribal member and his cohort, Paul Reddam
Another interesting fact I have just come upon…..Western Sky can not be licensed with the CRST because the interest charged on these loans violate the Tribe’s own civil and criminal usury rates of 18% and 24%. All of these loan agreements continually state how Tribal law will apply as if we were “on the reservation” when these loans were transacted. If that were true, then they would be held to their own Tribe’s laws and would be charged for making usurious loans.
Excerpt from Law & Order Code Cheyenne River Sioux Tribe 1978 Revision…….
“Sec. 3-4-52 Criminal Usury.
(1) A person is guilty of criminal usury when he knowingly engages in or directly or indirectly provides financing for the business of making loans or purchases a rate of interest or consideration therfore higher than the following:
(a) if the amount to which the interest applies is less than $100.00 or the period of the loan or financing is less than one year, the rate of interest shall not exceed a 24 percent per annum simple interest rate.
(b) if the amount to which the interest applies is greater than $100.00 or the period of the loan or financing is greater than one year, the rate of interest shall not exceed an 18 percent per annum simple interest rate.
(2) In computing the interest rate, the following will be considered to be part of the interest charged: all charges payable directly or indirectly by the person receiving the credit as an incident to the extension of credit, including any of the following types of charges: time price differential, service, carrying or other charge, however denominated, premium or other charge for any guarantee of insurance protecting the seller against the buyer’s default or other credit loss, charges incurred for investigating the collateral or credit of the borrower, and commission or fees charged for obtaining credit.
(3) Criminal usury is a Class B offense.
I am getting more and more disgusted at this whole business practice the more I read.
Based on what Mr. Chasing Hawk said in his recorded conversation with Mr. Inetianbor, it would appear that NONE of the agreements issued by Western Sky would be valid in any state since he clearly stated that Western Sky is a PRIVATE company and the tribe has nothing to do with this business. Further, Western Sky is a South Dakota company. It is the equivalent of me doing business from New Jersey, being certified as a business in New Jersey and then applying Delaware law to the contract. What is even more troublesome is that the Tribe has their own usury laws so he is unable to lend to members of his own tribe. With all of this new information piling up how can he honestly think that what he was doing was “legal”? Every single contract ever produced is filled with illegal jurisdictions AND every single one was always done outside the reservation. However, Cash Call is the true lender which various States are finding out. I hope the indemnity clause holds up for Western Sky….not really…..Mr. Webb chose to do business this way knowing full well that its purpose was to evade all of the States with usury laws, supervised lending, payday loan laws. Also. I am quite certain that Mr. Webb knew that Paul Reddam had already been sued for his rent-a-bank scheme and the courts deemed Cash Call as the de facto lender in those arrangements. I do feel bad for the Tribe itself since it is their name and reputation being dragged through the mud. They should not have to be in the spotlight like this because of a greedy and deceptive tribal member and his cohort, Paul Reddam
Another interesting fact I have just come upon…..Western Sky can not be licensed with the CRST because the interest charged on these loans violate the Tribe’s own civil and criminal usury rates of 18% and 24%. All of these loan agreements continually state how Tribal law will apply as if we were “on the reservation” when these loans were transacted. If that were true, then they would be held to their own Tribe’s laws and would be charged for making usurious loans.
Excerpt from Law & Order Code Cheyenne River Sioux Tribe 1978 Revision…….
“Sec. 3-4-52 Criminal Usury.
(1) A person is guilty of criminal usury when he knowingly engages in or directly or indirectly provides financing for the business of making loans or purchases a rate of interest or consideration therfore higher than the following:
(a) if the amount to which the interest applies is less than $100.00 or the period of the loan or financing is less than one year, the rate of interest shall not exceed a 24 percent per annum simple interest rate.
(b) if the amount to which the interest applies is greater than $100.00 or the period of the loan or financing is greater than one year, the rate of interest shall not exceed an 18 percent per annum simple interest rate.
(2) In computing the interest rate, the following will be considered to be part of the interest charged: all charges payable directly or indirectly by the person receiving the credit as an incident to the extension of credit, including any of the following types of charges: time price differential, service, carrying or other charge, however denominated, premium or other charge for any guarantee of insurance protecting the seller against the buyer’s default or other credit loss, charges incurred for investigating the collateral or credit of the borrower, and commission or fees charged for obtaining credit.
(3) Criminal usury is a Class B offense.
I am getting more and more disgusted at this whole business practice the more I read.