Because of this, payday loan providers have finally developed a much more innovative and troubling prospective barrier to accountability.

Because of this, payday loan providers have finally developed a much more innovative and troubling prospective barrier to accountability.

  • Rent-A-Tribe

The payday loan providers’ latest effort in order to avoid accountability is just a variation on the rent-a-bank scheme: they consent to offer indigenous American tribes a percentage of these earnings and then attempt to claim tribal sovereign immunity from both state and federal law. See B. Walsh, “Outlawed by the States, Payday Lenders just simply just Take Refuge on Reservations,” Huffington Post (June 29, 2015). This is basically the area that is hottest in payday financing litigation now, utilizing the lenders’ tribal immunity claims being challenged by federal government officials, general general public interest attorneys, and personal professionals in the united states.

Payday lenders’ arrangements with Native American tribes are distributing, because are appropriate challenges to the lenders’ tribal resistance claims. In Felts v. Paycheck Today, No. D-202-cv-2008-13084 (N.M. Continue reading “Because of this, payday loan providers have finally developed a much more innovative and troubling prospective barrier to accountability.”