Indian tribes move into payday loans, evading state laws

[Newsjock]

Source: Los Angeles Times

A growing number of Indian tribes are getting into the payday loan business, saying they just want to raise revenue for their reservations while helping cash-strapped consumers nationwide.

But federal officials suspect that, at least in some cases, tribes are being paid to offer their sovereign immunity to non-Indian payday lenders that are trying to dodge state regulations.

So far, the tribes have prevailed over California and other states that have tried to assert authority over tribal lending operations. But they may now face a crackdown by the federal Consumer Financial Protection Bureau.

... "These online payday loans can have annual percentage rates of 600% or more," said Ellen Harnick, senior policy counsel for the Center for Responsible Lending, an advocacy group. "This is a relatively new way for the industry to get out from under state laws."

Read more: http://www.latimes.com/business/la-fi-lazarus-20130430,0,3504446,full.column

[MrYikes]

1. If the tribes are in control,, then it is a good thing.

[loli phabay]

2. uh why is ripping people off a good thing.

[Cal Carpenter]

3. Um, no. The payday loan industry is not a good thing

even when Native American tribes are involved.

Payday loan companies prey on poor people. They charge insane interest rates. They mess up people's finances and credit. They are not good.