“Tribal Immunity” May No Longer Be a Get-Out-of-Jail Free Card for Payday Lenders
Payday loan providers aren’t anything or even creative inside their quest to use beyond your bounds regarding the legislation. As we’ve reported before, an ever-increasing amount of online payday lenders have recently looked for affiliations with indigenous American tribes in order to make use of the tribes’ unique appropriate status as sovereign countries. Associated with clear: genuine tribal companies are entitled to “tribal immunity, ” meaning they can’t be sued. If your payday loan provider can shield it self with tribal resistance, it may keep making loans with illegally-high rates of interest without having to be held in charge of breaking state usury legislation.
Inspite of the emergence that is increasing of lending, ” there was clearly no publicly-available research for the relationships between loan providers and tribes—until now. (more…)