In a landmark event, the FTC can now sue deceptive payday loan companies. On March 20, a United States District Court judge confirmed the FTC (Federal Trade Commission) is allowed to sue payday lenders that claim ties to Native American tribes make them immune to such laws.
In recent years, many people have used the tribal Native American lands as a breeding ground for payday loan companies. Many of them utilize loopholes to increase the efficacy and profitability of the lending, but they are now just as culpable as anyone else.
This is a huge decision for many people, especially those living in states where payday loans are illegal. In many cases, the people of New York have been getting high-interest rate payday loans from Native American tribal-affiliated companies from the Dakotas. This judge nailed the first spike in the coffin of these companies.
Immunity and Native American Loans
There has been a lot of discussion about immunity from Federal laws due to Native American status. However, it is important to note that the people involved with such cases rarely work in the payday loan industry. Because so many have been doing this lately, it is a hot topic for many people in legislation. The United States is based on common law, which means that judge Gloria M. Navarro’s Federal court in Nevada will probably be held up in other places.
It takes a lot for a case to be overturned, and it is, in some situations, beneficial for this to occur. However, when it comes to the FTC can sue the deceptive practices of some payday loan companies, it makes complete sense.
Hopefully, this means that the companies affiliated with Native American tribes will either stop this affiliation or start using better lending practices in general. Even though the FTC was already given some authority, this confirmed it in a very drastic way.
Part of the Payday Loan Crackdown
The economy is starting to improve in the United States, but major stock markets and indices never look too deeply at the poorest people in society. These people are often glossed over completely, which gives an altered and skewed opinion of the results. In many cases, the poorer and low-income people in the United States are suffering from the outcome of the financial crisis.
With no more boom years, many are unemployed, and some have stopped looking for work altogether. There is a lot of pain for everyone involved, but it is coming along easier as time goes on.
However, payday loans and the trap that people get into are not at all easy. In most situations, people trying to get rid of their payday loans do not know how it can be done properly. Make sure you can get the right support from a payday loan consolidation company if that is your route.
