indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Native American Bank - Native people investing in Native communities
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Blog: Internet lenders can longer hide behind tribal immunity

Filed Under: Business | Law | National
More on: cheyenne river sioux, ftc, immunity, payday loans
   

The Federal Trade Commission says Internet lenders in Indian Country must comply with federal consumer protection laws:
For years, a handful of sketchy payday lenders have been using purported affiliations with tribal lands to try to skirt federal and state laws. But courts and regulators have recently been cracking down on these operations, saying that a tribal connection does not shield a business from prosecution. One operation facing charges from the Federal Trade Commission has now agreed to pay nearly $1 million in penalties over charges that it illegally garnished borrowers’ wages and wrongfully sued them in tribal courts.

Back in 2011, the FTC sued Martin Webb, operator of various online payday lending operations, including Great Sky Financial and Western Sky, whose TV ads are likely familiar to regular viewers of cruddy daytime and late-night TV shows, for allegedly attempting to garnish borrowers’ wages without first obtaining a court order, in violation of the FTC Act.

These same companies were subsequently accused of suing borrowers in a South Dakota tribal court that had no jurisdiction over these loans. The tribal court has no jurisdiction over people who are not members of the tribe and who do not reside either on the reservation or elsewhere in South Dakota.

“Regardless of tribal affiliation, debt collectors must comply with federal law,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

Get the Story:
Chris Morran: Payday Lenders Can’t Use Tribal Affiliation To Garnish Wages Without Court Order (The Consumerist 4/11)

Related Stories:
Indian-owned online lender enters settlement with Connecticut (4/10)


Copyright © Indianz.Com
More headlines...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Choctaw Nation Trial:
Former Choctaw Nation employee plans appeal in criminal case (11/24)
Choctaw Nation releases statement after guilty verdict in case (11/24)
Former Choctaw Nation employee found guilty after lengthy trial (11/24)
Trial on Choctaw Nation fraud winds down with final testimony (11/24)
Latest News:
Tim Giago: Cornflakes every Sunday at Indian boarding school (11/24)
Charles Trimble: A time to give thanks -- For whatever reason (11/24)
Mark Trahant: Incoming Alaska governor opens doors to tribes (11/24)
Native Sun News: Four from South Dakota win big at rodeo final (11/24)
Suzan Shown Harjo to receive Medal of Freedom at White House (11/24)
Bryan Brewer: Tribal communities need better Internet service (11/24)
Harold Monteau: Teach children about our positive tribal values (11/24)
Crystal Willcuts: Keystone XL Pipeline just makes the rich richer (11/24)
PBS: VAWA helps tribes go after non-Indian domestic offenders (11/24)
Sisseton Wahpeton Oyate in shock after shooting leaves 4 dead (11/24)
Otoe-Missouria Tribe defends online loan business amid scrutiny (11/24)
Chippewa Cree Tribe swears in chairman more than a year later (11/24)
Florida Supreme Court declines Miccosukee child custody case (11/24)
Mille Lacs Band grows economy with Oklahoma hotel purchase (11/24)
Editorial: BIA fails to resolve Cayuga Nation leadership dispute (11/24)
Faction of Chukchansi Tribe walks away from casino mediation (11/24)
Tribal casinos cancel Bill Cosby shows as allegations resurface (11/24)
Editorial: Poarch Creeks control their own destiny with gaming (11/24)
Editorial: Renew Class III gaming compact with Seminole Tribe (11/24)
Native Sun News: Oglala Sioux youth to join White House meet (11/21)
Obamas welcome youth from Standing Rock Sioux Tribe to DC (11/21)
House passes bill to address Grand Portage Band per capitas (11/21)
House Natural Resources Committee passes three tribal bills (11/21)
Chaske Spencer: Changing the narrative for our Native youth (11/21)
Winona LaDuke: No one believes in the 'black snake' pipeline (11/21)
Dina Gilio-Whitaker: Tax disparities remain in Indian Country (11/21)
ICT interview with DOI deputy secretary on Cobell buy-backs (11/21)
Oglala Sioux Tribe rounds up dogs after deadly attack on girl (11/21)
Leader of Navajo Nation signs bill for higher tax on junk food (11/21)
North Dakota tribe in negotiations for pipeline to curb flaring (11/21)
Saginaw Chippewa Tribe passes language to new generation (11/21)
Little Traverse Bay Bands swear in interim leader after recall (11/21)
Blog: Play-by-play of election controversy on Navajo Nation (11/21)
Column: Theories link Thanksgiving to 1637 Pequot massacre (11/21)
Editorial: Work with Burns Paiute Tribe on land-into-trust bid (11/21)
Ex-employee of Passamaquoddy Tribe admits to drug charge (11/21)
BIA publishes notice of Karuk Tribe Class III gaming compact (11/21)
Oklahoma reports drop in gaming exclusivity fees from tribes (11/21)
Pala Band gears up for official launch of Internet gaming site (11/21)
Native Sun News: Oglala Sioux woman shot and killed by police (11/20)
Mark Trahant: Lakota honor song wasn't out of place in Senate (11/20)
Dog attack blamed for death of eight-year-old girl at Pine Ridge (11/20)
DOI issues status report on Cobell land consolidation program (11/20)
Greg Grey Cloud explains Lakota honor song after Senate vote (11/20)
Steven Newcomb: Disestablishing the doctrines of domination (11/20)
Sen. Mark Begich: Moving forward for the first people of Alaska (11/20)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.