State sues California-based Internet lender, says it uses tribe as a front for high-rate loans

  • Article by: Jennifer Bjorhus , Star Tribune
  • Updated: July 11, 2013 - 11:53 PM

Regulators say arrangement lets non-Indian lenders charge illegally high interest rates.

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jbpaperJul. 11, 1310:00 PM

There's an easy way to put these companies out of business, stop borrowing money from them.

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sek2undrstndJul. 11, 1310:56 PM

345% APR? 149% APR? Heck, the mafia charged a lower APR. Of course money always flows to where it can make the most profit.

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brainerdguyJul. 12, 13 6:32 AM

republicons say we don't need regulations!

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sjfellegyJul. 12, 13 6:53 AM

"Selective Sovereignty" needs to be done away with and all these types of opportunity to skirt modern day laws will go away. It is high time we do away with this out-dated "tribal sovereign nation" system that helps very few Tribal members around the country in any form or fashion and costs billions of U.S. Treasury dollars to manage. As the high courts now say-- "times change and laws need to change with them". In this case, the 14th ammendment to the Constitution would prevail without a bogus, failed "selective sovereignty" system in place. Time for the MN. AG. to step in and end many other of this type of scams going on all over Mn. also.

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la55122Jul. 12, 13 7:50 AM

As usual, the financially inept are made victims of unscrupulous lenders. No famous spokesman or friendly TV sales pitch is going to make the payments demanded. The regular banks are too willing to give access to checking accounts on behalf of the scammers. If the AG can get refunds for victims, the profitability will diminish and the lenders will go elsewhere.

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dewarfJul. 12, 13 7:56 AM

brainerdguy: we don't need more regulations if people make informed decisions and then take responsibility for their actions rather than lean on the government to bail them out. But then, didn't these same people elect Obama (twice)? 'Nuff said.

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ltbsomnJul. 12, 13 7:58 AM

I'm tired of this constant hiding behind "We're a sovereign nation" excuse. The last time I checked, American Indians are American citizens, and should be subject to the same taxes as the rest of us have to pay (property, income, vehicle license, etc.) I know if Indian gaming was taxed like other forms of gambling, Minnesota wouldn't be having these budget problems year after year. Some tribal members are reaping over $1 million in income annually tax free. This loan fiasco is just another example of the loopholes being exploited by certain individuals. You can't just follow the rules which give you the most benefit, you must follow them all!

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pitythetoolsJul. 12, 13 8:05 AM

But they tell me in the commercials that making the payments help me rebuild my credit!

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luzhishenJul. 12, 13 8:56 AM

"e don't need more regulations if people make informed decisions and then take responsibility for their actions " So why do conservatives go out of their way to allow businesses to keep information from consumers? Whether it's the country of origin of the product, APR, or percentage GMO, corn syrup, etc., conservatives think it's okay to deny consumers information in the name of competitiveness. Here's a regulation that will put a dent in this problem; make any lender put the total cost of the loan in any ad for as much space or time as is used to tout the product, using the largest font appearing in the ad...i.e. "CASH NOW" followed by "$1,000 will cost you $3,500", same color, no hiding. Get ready for conservative whining and moaning!

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joe_mnJul. 12, 13 9:01 AM

These loans charge 200% interest but "payday" loans charge even higher interest? Whew. What a bargain.

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