CT ruffles tribal feathers with online pay day loan ban

CT ruffles tribal feathers with online pay day loan ban

Connecticut recently slammed the doorway on an Oklahoma Indian tribe’s tries to ply needy residents with ultra-high-interest “payday loans” via the web, a move who has exposed a brand new portal to the appropriate debate over whether or perhaps not Indian tribes must follow state consumer-lending rules.

In another of their last functions before retiring as state banking commissioner, Howard F. Pitkin on Jan. 6 granted an opinion that tagged as baseless claims by the Otoe-Missouria tribe as well as its tribal president it has “tribal sovereignty” to grant loans at under $15,000 with interest of 200 % to 450 per cent, despite the fact that such personal lines of credit violate state legislation.

And also if their payday operations aren’t appropriate in Connecticut, the tribe’s “sovereign resistance, ” they allege, shields them from $1.5 million in civil penalties and a set of cease-and-desist sales their state levied against it and their frontrunner. Continue reading “CT ruffles tribal feathers with online pay day loan ban”