Editor’s Note: on, a day after this story went to press, the Oklahoma tribe and its chairman filed an appeal in Connecticut state court friday.
Connecticut recently slammed the doorway on an Oklahoma Indian tribe’s tries to ply needy residents with ultra-high-interest “payday loans” via the world-wide-web, a move which has exposed a portal that is new the appropriate debate over whether or otherwise not Indian tribes must follow state consumer-lending rules.
In just one of their final functions before retiring as state banking commissioner, Howard F. Pitkin on Jan. 6 released an opinion that tagged as baseless claims because of the Otoe-Missouria tribe and its own tribal president so it has “tribal sovereignty” to grant loans for under $15,000 with interest of 200 per cent to 450 %, despite the fact that such personal lines of credit violate state legislation.
And also if their payday operations aren’t legal in Connecticut, the tribe’s “sovereign resistance,” they allege, shields them from $1.5 million in civil charges and a couple of cease-and-desist purchases their state levied against it and their frontrunner. The tribe claims Connecticut’s as well as other states’ consumer-protection laws and regulations cannot bar it from pursuing enterprises that generate income and jobs for tribal users.
It really is, relating to one Connecticut banking division official, the initial tribal challenge regarding the state’s consumer-lending statutes. Continue reading CT ruffles tribal feathers with online loan ban that is payday