Internet lenders in Indian Country under scrutiny in 21 states

Wednesday, March 19, 2014  

At least 21 states are targeting online lenders in Indian Country, The New York Times reports.

State authorities are filing lawsuits and taking regulatory actions against lenders with ties to tribes or individual Indians. In at least one instance, they succeeded -- Western Sky Financial, which was owned by a member of the Cheyenne River Sioux Tribe of South Dakota ceased operations.

But most states are having trouble piercing sovereign immunity. That doesn't appear to be the case with a dispute involving the Federal Trade Commission -- the agency has won rulings that subject tribal lenders to federal law.

Get the Story:
Dealbook: Costly Loans Are Drawing Attention From States (The New York Times 3/19)

Law Article: Tribal lenders win a partial victory in FTC litigation (3/13)