Western Sky Financial

Michigan Federal Court Orders Debtor to Abritration against Western Sky

Matthew L.M. Fletcher

Here are the materials in Narula v. Delbert Services Corp. (E.D. Mich.):

11 Motion to Dismiss

14 Response

17 Reply

18 DCT Granting Motion to Dismiss

An excerpt:

 

Because the Court determines that the forum-selection clause does not apply in this case and the Arbitration Agreement is not a product of fraud and satisfies the Sixth Circuit test to grant motions to compel arbitration, the Court finds that Defendant’s motion to dismiss and compel arbitration  [8] is GRANTED, the parties are ordered to Arbitrate this dispute, and the case is hereby DISMISSED.

 

Briefs in Minnesota v. CashCall (Western Sky)

Matthew L.M. Fletcher

Here are the materials (so far) in State of Minnesota v. CashCall Inc. (Minn. Dist. Ct.):

Minnesota Motion for TRO

Minnesota Opposition

Cashcall Motion to Dismiss

Cashcall Opposition to Minnesota Motion for TRO

The complaint is here.

NPR’s Planet Money on What Happened to Western Sky

Matthew L.M. Fletcher

Here.

An excerpt:

On TV this summer, you might have seen this ad with a smiling young woman offering help for all those troublesome bills.

“The problem-solver from Western Sky. Get up to $10,000 without collateral. Enough to pay off your payday advances, once and for all,” she says.

There’s a beating drum in , presumably to drive home a point — Western Sky says it’s 100 percent Native-American owned and therefore exempt from state laws banning high-cost loans.

But Benjamin Lawsky, superintendent of financial services for New York State, doesn’t buy that argument. “These are companies looking to prey on people who in my opinion are some of the most vulnerable people in our society,” he says.

NYTs: New York Regulators Targeting Western Sky

Matthew L.M. Fletcher

Here. H/t Pechanga.

Minnesota Files Suit Against CashCall (Western Sky Financial)

Victoria Sweet3 Comments

Complaint – Minnesota v CashCall

From an article about the suit:

Minnesota regulators are, for the first time, challenging a practice in which an Internet lender is allegedly hiding behind tribal sovereign immunity to skirt state laws.

A lawsuit filed Thursday against California-based CashCall Inc. takes aim at the rent-a-tribe phenomenon, which Attorney General Lori Swanson described in an interview as “an emerging problem” that has come under fire elsewhere.

The complaint, filed jointly by Swanson and state Commerce Commissioner Mike Rothman, accuses CashCall and subsidiaries WS Funding and WS Financial of engaging in an “elaborate ruse” to deceive borrowers and regulators and fleece them with illegally high rates on Internet loans.

A lawyer for the company would only say the lawsuit contains inaccuracies.

Previous coverage about CashCall and Western Sky Financial here.