November 27

Connecticut probes Oklahoma tribe’s pay day loan companies

Connecticut probes Oklahoma tribe’s pay day loan companies

An Oklahoma Indian tribe that the Connecticut Department of Banking claims operates two loan that is high-interest 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.

Even though the tribe views the present state Superior Court ruling as a victory, it’ll be up to your banking division to consider other problems and determine whether or not to pursue further.

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

The businesses have now been 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 collateral, 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. Continue reading

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