A non-Indian who is involved with the tribal payday loan industry is the target of a new class action lawsuit, Courthouse News Service reports.

The lawsuit claims Scott Tucker can't issue payday loans in Kansas because he lacks a license and is a convicted felon. So instead he enlisted the Miami Nation and the Santee Sioux Tribe to run his multimillion dollar operation, according to the complaint.

The tribe tribe "agreed, at its option, to furnish an office on tribal lands staffed by at least one employee in order to permit defendant Scott Tucker to use the tribe's name to create a façade of immunity from state and federal lending laws," the lawsuit states.

The Federal Trade Commission is suing payday loan companies associated with Tucker. The agency says the companies are engaged in illegal business tactics, such as charging excessive fees for loans issued over the Internet.

Get the Story:
Class Fights 'Rent-a-Tribe' Payday Loans (Courthouse News Service 4/11)

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