Western Sky Settlement Fund

As the result of a legal settlement the Attorney General reached in January 2014, many New York residents who obtained a loan from Western Sky are eligible for a refund of illegal interest paid on those loans.  To receive a refund, eligible borrowers must complete and submit a claim formto the settlement fund administrator, Feinberg Rozen, LLP, no later than August 5, 2014.  Claims may be submitted electronically through the settlement fund administrator’s website, www.westernskysettlement.com, or by mailing a paper copy of the claim form to the settlement fund administrator.  Copies of the claim form were mailed to all eligible borrowers on April 29, 2014 and can also be downloaded here.

Below are answers to several frequently asked questions relating to the settlement.  New York residents with questions relating to the completion and submission of a claim form should contact the settlement fund administrator, by email at claimantservices@westernskysettlement.com or by phone at (877) 302-2525.  New York residents with additional questions about the terms of the settlement should contact the Attorney General’s Consumer Hotline at (800) 771-7755. 

Frequently Asked Questions

Settlement   |   Refunds   |   Loan Modifications  |   Credit History Adjustment

Settlement

What is this settlement about?

On August 12, 2013, Attorney General Eric Schneiderman filed a lawsuit against Western Sky Financial LLC (“Western Sky”), CashCall, Inc. (“CashCall”), WS Funding LLC (“WS Funding”) and their ownersover illegal, high-interest loans made to New York residents.  In January 2014 the Attorney General reached an agreement with these parties that resolved the lawsuit and provides relief for many New York residents.  Under this agreement, certain New York borrowers are eligible for a refund.  The agreement also requires that many New York borrowers receive modifications of existing loans and credit history adjustments.

Refunds

Am I eligible for a refund?

You are eligible for a refund if you (1) received a loan from Western Sky while a resident of New York and (2) paid Western Sky, CashCall, or an entity collecting on their behalf, more than your loan proceeds (the amount you received from the loan) plus the legal interest rate of 16%.  If you are unsure of whether you are eligible for a refund, please contact the settlement fund administrator, by email at claimantservices@westernskysettlement.com or by phone at (877) 302-2525.

How do I apply for a refund?

To obtain a refund, you must complete a Claim Form and submit it to the settlement fund administrator no later than August 5, 2014.  Claims may be submitted electronically through the settlement fund administrator’s website, www.westernskysettlement.com, or by mailing a completed form to the settlement fund administrator at the address shown on the form.  Claim Forms were mailed to refund eligible borrowers on April 29, 2014 and are also available at the settlement fund administrator’s website. 

How much am I eligible to receive?

The amount of your refund will be based on the total amount you paid to Western Sky, CashCall, or an entity that collected on their behalf over and above the legal repayment amount of a loan with a legal rate of interest of 16%.  Because of this, refunds vary widely among borrowers.  The average refund across all refund eligible borrowers is over $1,000. 

Loan Modifications

Am I eligible for a loan modification?

You are eligible for a loan modification if (1) you received a loan from Western Sky while a resident of the New York or you were resided in New York as of March 5, 2014, and (2) your loan was held by Western Sky, CashCall, or an entity acting on their behalf on February 3, 2014.  

How do I apply for a loan modification?

Your loan should already have been modified on or before March 5, 2014.  You do not need to take any action to obtain a loan modification. 

How was my loan modified?

How the loan was modified depends on how much you paid. There are two categories of loan modification:

Category 1: For each loan for which you paid Western Sky, CashCall, WS Funding, or an entity collecting on their behalf less than your loan proceeds (the amount you received from the loan):

  • Your outstanding balance (including all interest and fees) should have been reduced to an amount equal to the difference between the loan proceeds and your total payments as of March 5, 2014.  The interest rate going forward should also have been reduced to 0%.
  • For example, a borrower that was issued a loan of $1,500, consisting of  $1,000 in proceeds and a $500 fee, and who repaid CashCall $600 in total, has repaid less than she received.  In this example, the principal balance remaining will be reduced to $400 ($1,000 - $600) and the interest rate will be reduced to 0%.

Category 2: For each loan for which you paid Western Sky, CashCall, WS Funding, or an entity collecting on their behalf more than your loan proceeds (the amount you received from the loan):

  • Your outstanding balance (including all interest and fees) should have been reduced to zero as of March 5, 2014 and all collections should have ceased.
  • For example, a borrower that was issued a loan of $1,500, consisting of $1,000 in proceeds and a $500 fee, and who repaid CashCall $1,100 in total, has repaid more than she received.  In this example, CashCall will cease all collections and the borrower will not be responsible for any further payments.

Credit History Adjustment
 

Am I eligible for a credit history adjustment?

You are eligible for a credit history adjustment if you received a loan from Western Sky while a resident of New York or you resided in New York as of March 5, 2014.

How will my credit history be adjusted?

Credit agencies that maintain a record of your loan should already have been notified that all records reported by Western Sky, CashCall, or an entity collecting on their behalf should be removed from your credit history.

sitemap Intergov foil PressOffice RegionalOffices SolicitorGeneral AppealsandOpinions ConvictionBureau CrimPros OCTF MFCU PublicIntegrityInvestigations TaxpayerProtection Antitrust ConsumerFrauds Internet InvestorProtectionRealEstateFinance CharitiesCivilRightsEnvironmentHealthCareLaborTobaccoCivilRecoveriesClaims Litigation RealPropertySOMB BudgetLegalRecruitmentHuman Resources Bureau