Hey everyone it’s that time again. Today we are going to look at the commercial we have been seeing on TV for Western Sky Financial. This is a company that is operated wthin the Cheyenne River Sioux Reservation, this is important to understand as they are not a US based company. What this also means is that they are not subject to the same banking, or truth in lending practices that US companies must adhere to.
But is Western Sky financial a Scam?
Hardly, They state right in their commercial, “Yes they money is expensive, but there is no collateral required.” This theme is very common among payday loan operators as well. Before you fill out an application for a loan, check out their rates. You can view their rates right on their websites rates page. They describe the APR as well as the origination loan fee that will be assessed to each loan depending on the loan you are requesting. Western Sky Financial puts their rates out their for everyone to see how much the loan will cost you, hardly a scam. Yet these are very expensive loans. The lowest available APR is 116.73% and it can run as high as %215.03.
The lowdown on Western Sky Financial
Almost every payday loan company you might run into is governed by individual state laws that cap the interest rate payday lenders can charge. These state laws are designed to protect consumers from extreme APR’s and unrealistic repayment schedules. If you were to borrow the $5,000 maximum at their lowest APR of %116.73, then take the full 84 month payment schedule, you will have repaid the loan 7 times over. For a total repayment amount of $40,872.72 YIKES!
Now step away for a minute If you need $5,000 for a month and you also know that you can pay it back at the rate of about %10 per month. Then this might be an option to you. Then the money only costs you around $600 for a month ( if you pay every cent back within 30 days ). This is what the company wants. They want their money back, they want to make money on the risk they are taking in making a no collateral loan to someone with shaky credit.
Scam no….Expensive money, yes. Still probably better than a loan shark. Quite possibly the same guys though.
Here is an option you may want to consider. 60 Minute Payday is monitored and regulated by the US goverment.