The office of American Web Loans in Red Rock, Oklahoma, owned by the Otoe-Missouria Tribe. Photo by Jane Daugherty.
The Connecticut Department of Banking is going after the online lending operation of the Otoe-Missouria Tribe of Oklahoma. The state issued a $700,000 fine to Chairman John Shotton for allegedly violating state banking laws. The state also issued another $800,000 in fines against two tribal entities. “We are evaluating the legal options available to us as we move forward with this matter and look forward to continuing to fight for our sovereign rights,” Shotton told Bloomberg Businessweek. The tribe went to court last year to battle a similar enforcement action in the state of New York. The 2nd Circuit Court of Appeals refused to stop the state, prompting the tribe to drop its lawsuit. Connecticut also falls in the 2nd Circuit so the tribe may not have many legal options if it wants to avoid the state's jurisdiction. Get the Story:
Payday Lending by Tribe Targeted by Connecticut (Bloomberg Businessweek 1/6) 2nd Circuit Decision:
Otoe-Missouria Tribe v. NY State Department of Financial Services (October 1, 2014)
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