Clearwater Lending LLC dba Cash Fairy
Unlicensed Tribal Payday Lender
Updated Alert: September 23, 2013
Another alert regarding Clearwater Lending and Cash Fairy was posted on September 23, 2013.
See: September 23, 2013 Alert.
March 13, 2013
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 cashfairy.com 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:
Clearwater Lending LLC d/b/a Cash Fairy
PO Box 320
Hays, MT 59527
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 www.dfi.wa.gov.
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.
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 www.dfi.wa.gov.
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 www.ftc.gov.
If you feel you have been the victim of a scam involving the Internet, contact the Internet Crime Complaint Center at www.ic3.gov.
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.