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02Sep

“Tribal Immunity” May No Longer Be a Get-Out-of-Jail Free Card for Payday Lenders

“Tribal Immunity” May No Longer Be a Get-Out-of-Jail Free Card for Payday Lenders

“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 away from bounds associated with legislation. As we’ve reported before, an escalating wide range of online payday lenders have recently wanted affiliations with Native American tribes in order to make use of the tribes’ unique legal status as sovereign countries. Associated with clear: genuine tribal companies are entitled to “tribal immunity, ” meaning they can’t be sued. If a payday loan provider can shield it self with tribal resistance, it could keep making loans with illegally-high rates of interest without getting held responsible for breaking state laws that are usury.