Indian-owned lending firm seeks dismissal of New York case

Wednesday, September 18, 2013  

Western Sky Financial, an Internet loan business owned by a member of the Cheyenne River Sioux Tribe of South Dakota, is seeking the dismissal of a lawsuit filed the state of New York.

Western Sky is not a tribal-owned business. But owner Martin Webb says he operates under the jurisdiction of the tribe and not the state of New York.

"Fundamental principles of tribal sovereignty...categorically bar any state, including New York, from exercising any form of jurisdiction over Native Americans on out-of-state reservations," Western Sky said in a court filing, The Wall Street Journal reported.

New York Department of Financial Services Superintendent Benjamin Lawsky has told Western Sky and other Internet loan firms, including several owned by tribal governments, to stop doing business in the state.

Get the Story:
Online Lender Seeks Dismissal of New York Suit (The Wall Street Journal 9/18)

Otoe-Missouria Tribe sees benefits from Internet lending firms (9/16)
Column: States paying more attention to Indian online lenders (9/16)
Law Article: Non-Indian lending partners are likely next target (9/16)
Tribal online lenders off to court in lawsuit against New York (9/11)
Firm tied to Western Sky barred from business in Minnesota (9/10)
Column: Look for source of money behind online loan industry (9/9)
Indian loan firm lays off 94 employees amid mounting legal woes (09/04)
Editorial: Tighter regulation needed for online loan industry (08/30)
Blog: State actions take toll on Indian payday loan industry (08/29)
Western Sky Employees: Fighting for our voices to be heard (8/28)
Indian online lender lays off employees and cuts new loans (8/27)
New York sues online lender operated by Cheyenne River man (08/13)
Center: Indian Country payday lenders face increased scrutiny (8/9)
New York tells Indian Country payday firms to stop business (8/6)