Payday lender owned by Cheyenne River Sioux man loses case
Posted: Thursday, November 17, 2011
A payday lending business that is owned by a member of the Cheyenne River Sioux Tribe
cannot claim sovereign immunity, a court in West Virginia ruled.
Martin A. Webb offers loans on the Internet through Lakota Cash
. He faced complaints from consumers in West Virginia, whose attorney general went to court when the company refused to cooperate with an investigation.
According to news reports, Judge Louis "Duke" Bloom of the Kanawha County Circuit Court noted that the company was organized under South Dakota law, now tribal law. He also said Webb controlled the company and not his tribe.
Lakota Cash is reportedly offering loans with extremely high interest rates. The state forbids payday lenders from charging more than 18 percent interest.
Get the Story:
Payday lender can't hide behind American Indian tribe status, judge rules
(The Charleston Gazette 11/16)
W.Va. court enforces McGraw's subpoena against payday lender
(Legal Newsline 11/16)
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