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I was awarded a loan from Cash call who charged me snap interest on the loan . Is this interest rate legal ?

Newark, NJ |

Cash Call is the name of the company but I originated my loan with Western Sky . I've been paying them 486 . 20 per month for over a year and my balance is 5878 . 20 . Is this legal ?

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Attorney answers 2


I would need more information especially a copy of the loan agreement to provide a response.

No attorney-client relationship is created as a result of this submission. The information and answer provided is of a general advisory nature based on the limited information provided and should not be constured as formal legal advise.


Pay Day Loan companies often commit a host of state and Federal collection practice violations. For example, they threaten criminal action, ignore request to cease collection calls, and charge predatory interest rates. Note, there are no debtor prisons in the United States.

You should begin the process of protecting yourself by sending a certified mailing to the payday loan company asking for validation of that debt which includes a copy of any contract and an accounting of all charges and payments on the account. Also demand that they cease and desist from any collection communications. Finally, if you dispute any portion of their debt, inform them in that mailing that you dispute that debt. You can find sample debt validation/dispute letters on the internet.

A word of caution, this validation/dispute letter won’t eliminate any debt obligation (it might even incur further penalties and interest) but, in theory, it should stop the debt collector from harassing you and will serve as a basis of possibly identifying future violations in collection laws. Note, however, most payday loan companies rely upon a self imposed belief that they have immunity from collection laws due to their status as sovereign Native American nations. They also invoke arbitration laws at their whim. I would contact an attorney for further assistance. You can also try the state attorney general’s office and consumer advocacy groups.

I’d be happy to discuss your problem and, if needed identify a resource for attorneys in your area. I am personally licensed in Pennsylvania, other attorneys in our office are licensed in New Jersey.

Stew Crawford Jr., Esq.

Crawford Law Firm
A Full Service Law Firm Serving Pennsylvania & New Jersey

223 North Monroe Street
Media, Pa 19063 (Philadelphia Area)


All information provided in this comment is intended for informational purposes only and does not, by itself, create an attorney client relationship. If you wish to consult with an attorney, or have any questions concerning this comment, please feel free to contact our offices through any of the above contact sources.