Connecticut probes Oklahoma tribe’s pay day loan organizations

Connecticut probes Oklahoma tribe’s pay day loan organizations

An Oklahoma Indian tribe that the Connecticut Department of Banking claims operates two high-interest loan operations to make use of strapped metropolitan residents, has won at the very least a wait with its battle against imposition of $800,000 in charges.

Although the tribe views the state that is recent Court ruling as being a victory, it’ll be up into the banking division to consider other dilemmas and determine whether or not to pursue further.

A judge recently remanded the problem back once again to the division. In the event that division desires to pursue its situation from the Otoe Missouria Tribe, of Red Rock in north-central Oklahoma, Banking Commissioner Jorge Perez would need certainly to investigate further the links involving the two businesses, Great Plains Lending, LLC and Clear Creek Lending.

The businesses are providing alleged pay day loans of between $100 and $2,000 — at interest levels of over 400 per cent.

State legislation limits interest levels to 12 per cent for loans under $15,000.

Payday lenders generally provide tiny, short-term loans with small or no security, frequently to metropolitan dwellers and low-income residents whom reside from paycheck to paycheck.

The department claims the entities, which charge interest ranging from 199 percent to 420 percent on loans, reach beyond the tribal protections while the tribe contends their federal sovereign immunity protects them from the state.

“Otoe-Missouria tribal companies are owned and operated by the tribe, governed by tribal legislation and controlled by tribal regulatory authorities,” said Tribal Chairman John Shotton, in a reaction to the court choice. (more…)

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