“Tribal Immunity” May No Longer Be a Get-Out-of-Jail Free Card for Payday Lenders
Payday loan providers aren’t anything or even innovative within their quest to work beyond your bounds for the law. As we’ve reported before, a growing amount of online payday lenders have recently looked for affiliations with Native American tribes in order to use the tribes’ unique status that is legal 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 itself with tribal resistance, it may keep making loans with illegally-high interest levels without having to be held in charge of breaking state laws that are usury.
Regardless of the increasing emergence of “tribal lending, ” there is no publicly-available study associated with the relationships between lenders and tribes—until now. Public Justice is happy to announce the publication of a thorough, first-of-its sort report that explores both the general public face of tribal financing in addition to behind-the-scenes arrangements. Funded by Silicon Valley Community Foundation, the report that is 200-page entitled “Stretching the Envelope of Tribal Sovereign Immunity?: a study for the Relationships Between on line Payday Lenders and Native United states Tribes. ” Into the report, we attempted to evaluate every available way to obtain information that may shed light regarding the relationships—both reported and actual—between payday loan providers and tribes, centered on information from court public records, cash advance websites, investigative reports, tribal user statements, and several other sources.