Court Choice Signals End of Faux Tribal Payday Lending

Court Choice Signals End of Faux Tribal Payday Lending

Washington – The Second Circuit Court of Appeals in a determination today against Think Finance together with officers of Plain Green Loans has made magnificent that online tribal payday loan providers must conform to state rate of interest restrictions, licensing rules and other state guidelines, and that can be sued through their officers for injunctive relief when they try not to.

“This choice seems the death knell for tribal payday lending,” said Lauren Saunders, associate director for the nationwide Consumer Law Center.

“The faux tribal payday financing model is without question in line with the mistaken belief that payday loan providers could evade state rules by hiding behind indigenous American tribes. The Supreme Court has very long made clear that tribes must obey state legislation if they operate off booking, and that’s true of online tribal payday loan providers also. Continue reading “Court Choice Signals End of Faux Tribal Payday Lending”