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Tribal lenders

Date: Fri, 02/22/2013 - 00:02
Submitted by Cindy on Fri, 02/22/2013 - 00:02
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I need some clarification regarding tribal lenders because I can't find any consistent information on them. On these forums I see most say that they are illegal and cannot sue anyone because they are unlicensed. In my state of CA I do see that payday lenders must be licensed and abide by state law regarding fees. HOWEVER, a debt consolidation company told me that they are in fact immune from state laws and therefore can issue loans to anyone at any rate. She also said that they are not payday loans, they are installment loans so they don't have the same type of regulations.

At this point, I think my understanding is that although they may be immune to state laws, we are immune to their laws. They can sell loans and charge whatever fees they want. However, they cannot sue anyone because they are unlicensed and illegal. Is this correct?


A debt consolidation company is a group of lying trash. Do not listen to them - they want your money and will tell you anything to get you to sign up. NEVER consolidate PDLs. Steve's post is correct.


Submitted by waffles on Sat, 02/23/2013 - 17:03

waffles

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Which debt consolidation company are you talking about? Whoever they are, they are giving out fundamentally incorrect information.
1. They do have state and Federal law immunity but pretty much within the boundaries of their reservations. Outside, Federal and state laws apply and given that fact, their loans are not valid and the contract is null and void.
2. Payday loans and installment loans might differ on regulations but to be regulated, a lender would need to adhere to so guidelines laid down by a regulatory body, right? Legal lenders (Payday or otherwise) have to be licensed with the state DoC and follow the law of the land and the regulations laid down by the state DoC. Since tribal lenders are not licensed at all, the question of different applicable regulations hardly comes into play.
3. It is wrong to assume that they absolutely cannot sue you. They can but your defense is going to be that they are not licensed to lend within the state, nor do they follow state laws.


Submitted by Steve Barris on Fri, 02/22/2013 - 21:33

Steve Barris

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Tribal payday loan lenders can't sue anyone. They issue loans and charge extremely high fees. But borrowers are only required to pay back the principal amount.


Submitted by Good Nelly on Fri, 02/22/2013 - 21:08

Good Nelly

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