Business | Law

FTC accuses Indian payday loan company of unfair practices

The Federal Trade Commission filed an amended complaint in federal court today, accusing an Indian-owned payday loan company of unfair and deceptive practices.

Martin A. Webb, a member of the Cheyenne River Sioux Tribe of South Dakota, operates several payday lending companies on the Internet. When customers fail to pay up, he allegedly files suit in tribal court in order to garnish their wages.

"The tribal court does not have jurisdiction over claims against people who do not belong to the Cheyenne River Sioux Tribe and who do not reside on the reservation or elsewhere in South Dakota," the FTC claimed in a press release.

Tribes generally lack civil jurisdiction over non-members. But there are two exceptions, including one that applies to people who enter into "consensual" relationships with Indian entities.

Get the Story:
Press Release: FTC Charges That Payday Lender Illegally Sued Debt-Burdened Consumers in South Dakota Tribal Court Without Jurisdiction (FTC 3/7)

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