Closed Lender

Western Sky Financial Is No Longer Operating

Western Sky Financial closed in 2013 after multiple states successfully challenged its high-rate tribal lending model. This page explains what happened and outlines current alternatives. Fundslender is not affiliated with Western Sky.

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This lender is no longer operating

Western Sky Financial ceased all lending operations in September 2013. This page is maintained to help people searching for Western Sky understand what happened and find legitimate current alternatives.

What Was Western Sky Financial?

Western Sky Financial was an online personal loan company that operated from the Cheyenne River Sioux Tribe reservation in South Dakota. It was owned by Martin Webb, a tribal member. The company's business model relied on tribal sovereignty to argue it was exempt from state consumer protection and usury laws.

Western Sky offered personal loans ranging from a few hundred to tens of thousands of dollars at extremely high APRs, sometimes exceeding 200% to over 300%. Loans were heavily marketed through television, radio, and online advertising in the early 2010s.

What Happened to Western Sky?

  • Multiple state attorneys general, including those of New York, Maryland, Georgia, and others, took legal action to block Western Sky from operating in their states, arguing that tribal sovereignty exemptions did not apply to non-tribal borrowers in those states.
  • In 2013, Western Sky announced it would cease operations, citing state regulatory actions that made continued lending impossible in most of the country.
  • Western Sky's loan servicing was handled by CashCall. After Western Sky closed, CashCall continued to collect on outstanding loans until regulatory actions against CashCall itself forced it to largely cease operations as well.
  • Courts in the CashCall case found that CashCall, not Western Sky, was the true lender, and that state lending laws applied. This ruling undermined the tribal exemption argument that had supported the Western Sky model.

What Former Customers Should Know

  • Some former Western Sky borrowers were entitled to loan forgiveness or refunds under state attorney general settlements and the CFPB action against CashCall.
  • If you had a Western Sky loan, contact your state attorney general's consumer protection division or the CFPB to check whether any relief applies.
  • Credit report entries from Western Sky or related servicers can be disputed with the credit bureaus if they are inaccurate or relate to loans that were found unenforceable.

Current Alternatives

Western Sky Financial alternatives
AlternativeCost LevelNotes
Credit union PALAPR capped at 28%Low-cost; requires credit union membership
OportunModerate (20% to 36%)Designed for thin credit; regulated lender
Mainstream personal loanLower if credit improvedWorth checking even with a past limited credit history
State-licensed online lenderVariesEnsure lender is licensed in your state before applying

Frequently Asked Questions

Western Sky Financial closed in September 2013 after multiple states took legal action to ban its loan products. The company operated as a tribal lender based on the Cheyenne River Sioux reservation in South Dakota, attempting to use tribal sovereignty to exempt itself from state usury laws. States successfully challenged this model, and Western Sky ceased operations rather than comply with state rate caps.
Western Sky Financial was a licensed lender under tribal law, but its loan products carried extremely high APRs, sometimes exceeding 200% to 300%, which were illegal under many state laws. Multiple state attorneys general and the FTC took action against Western Sky and its associated servicer CashCall. It was not a simple fraud, but its operating model was found to be in violation of consumer protection laws in many jurisdictions.
Western Sky loans were typically sold to CashCall for servicing. Following the regulatory actions against both companies, some borrowers received loan forgiveness or were entitled to refunds depending on their state and loan terms. Contact your state attorney general or the CFPB for information on whether any relief may apply to your former loan.
Credit unions, Oportun, and some online installment lenders offer personal loans to borrowers with limited credit history at substantially lower rates. Nonprofit assistance and employer advances are also options. Fundslender connects borrowers with lenders in our network; we are not affiliated with Western Sky or any former tribal lender.
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