Default on a Western Sky loan.

[jetliner2]

I'm sure you've probably seen the ads on TV for Western Sky lending. If not, here's the deal. It's loans from an someone with an American Indian tribe with un-Godly terms. Long story short, if you borrow $1,000, you will end up paying back $4,756.56 over 24 months. 234.25% interest.

Anyway, here's my real question. (And no, I'm not planning on doing this. Just curious) Being that these are issued from an Indian reservation, what recourse would they really have if someone defaulted on one of these? It seems to me it would be the same as getting a loan from another country. I can't imagine if I flew to Canada and took out a loan, then turned around and told them to screw off that they could do anything.

 

[Michael Wechsler]

Wow... I just read the terms of the loan from their website. This is the very definition of the term "home field advantage."

All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit. If you do not wish your account to be subject to this arbitration agreement, you must advise us in writing. It is not sufficient to telephone us. we must receive your letter or e-mail within sixty (60) days after the date your loan funds or your rejection of arbitration will not be effective. in the event you opt out of arbitration, any disputes hereunder shall nonetheless be governed under the laws of the Cheyenne River Sioux Tribal Nation.

 

[Michael Wechsler]

As if that isn't enough, comments report that there is a pre-paid finance fee of at least $500 which gets added to the amount on the loan after it is signed. I'm not sure what to say about this except that it's shocking.

 

[army judge]

Well, well, well, they would be stymied to enforce recovery of the loan.
For discussion purposes, Joe Jim takes out a $1,000 loan.
Joe Jim receives the funds, and decides he won't repay the loan.
Joe Jim tells TPT lender, SUE ME!
The lender (Pine Tree Tribe) would have to sue Joe Jim in his state of residence.
The Pine Tree Tribal Court has no ability to do anything directly to Joe Jim, or his assets.
Joe Jim resides in Alabama, The Pine Tree Reservation and court is located in Wyoming state.
The loan isn't secured, and even if it were, TPT would have to pursue Joe Jim in his state, Alabama.
A suit could be brought in Federal Court, theoretically.
In all practicality, I suspect TPT lender could try and sell the loan to a debt collector for pennies in the dollar.

But, any attempt at enforcing said loan in all 50 states would run smack dab into usury laws.

We haven't yet begun to discuss equity, public policy, and fair lending practices.

Joe Jim would have little to worry about.

TPT lender rapes too many other suckers to aggressively pursue Joe Jim, so in all likelihood, everyone just moves on.

 

[Michael Wechsler]

I wonder whether such judgments are recognized and are enforceable as a state court judgment is honored in sister states. There is also the Uniform Enforcement of Foreign Judgments Act which might apply as well. If so, then I am wondering whether Pine Tree would be able to obtain a judgement in their home court and then try to enforce it in the defendant's home state and file there to enforce and avoid any review on the merits.

 

[disagreeable]

I wonder if they can order him to be extradited and scalped???