Clearwater Lending LLC (Cash Fairy) - Unlicensed Payday Loans

Date Posted: 
Wednesday, March 13, 2013

Updated Alert: September 23, 2013
Another alert regarding Clearwater Lending and Cash Fairy was posted on September 23, 2013.
See: September 23, 2013 Alert.

The Washington State Department of Financial Institutions (DFI) has received complaints against Clearwater Lending LLC d/b/a Cash Fairy. It appears that this entity is operating as a tribal online payday lender. This entity stated they are an entity wholly owned by the Fort Belknap Indian Community on the Fort Belknap Reservation of Montana, and that it has sovereign immunity. This entity asserts that it is not subject to regulation by DFI and that only the United States Government has jurisdiction over federally recognized Indian Tribes and their business activities.

Clearwater Lending LLC d/b/a Cash Fairy is not licensed by the DFI. This entity is not registered to conduct business in Washington State by the Department of Licensing, the Department of Revenue, or the Secretary of State.

Washington residents are advised that state law provides in RCW 31.45.105(1)(d) and (3) that a small loan made by an unlicensed entity to a person physically located in Washington is uncollectible and unenforceable in Washington State.

Clearwater Lending LLC d/b/a Cash Fairy operates a website at and lists its phone number as (866) 300-6046.

If you have a complaint against Clearwater Lending LLC d/b/a Cash Fairy, you can mail it to:

Michael Fox
Clearwater Lending LLC d/b/a Cash Fairy
PO Box 320
Hays, MT 59527

Verify Licenses

DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the "Verify a License" feature on the DFI’s website at

Payday Loan Debt Collection Laws

Consumers should know that Washington state law prohibits threatening or harassing behavior by individuals attempting to collect a payday loan. Only licensed companies are permitted to make payday loans in Washington.

The federal Fair Debt Collection Practices Act says debt collectors must send consumers a written notice within five days of their first phone call, showing how much the consumer owes and where the debt is from. The law says collectors can not say or even imply that nonpayment is a crime.

They can't call before 8 a.m. or after 9 p.m. Collectors are not allowed to speak to a consumer’s employer about their debt. They are prohibited from harassing or abusing consumers and they must stop calling if the consumer asks them to.

Report Fraud

If you are suspicious of unlicensed activity by a payday lender contact the Department of Financial Institutions at 1-877-RING-DFI (746-4334), or online at

If you feel you have been the victim of a loan scam, contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357), or online at

If you feel you have been the victim of a scam involving the Internet, contact the Internet Crime Complaint Center at

If you feel you have been the victim of a scam and are concerned about your personal financial information, contact your banking institution and the three major credit bureaus.