Banking Department Claims Tribal Payday Lending Organizations Don’t Have Sovereign Immunity

Banking Department Claims Tribal Payday Lending Organizations Don’t Have Sovereign Immunity

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Connecticut’s Department of Banking has figured two payday financing organizations owned by the Otoe-Missouria Tribal country are not protected by sovereign immunity and may be pursued by the division for violating Connecticut’s lending laws. Banking Commissioner Jorge Perez concluded on May 6 that the 2 organizations, Great Plains and Clear Creek, aren’t hands associated with the tribe and that its Chief John Shotton “does not have tribal sovereign resistance from either the economic penalties or prospective injunctive relief.”

The underlying allegation is that the companies violated the state’s little loan legislation by billing Connecticut borrowers annual interest rates including 199.44 percent to 448.76 percent on short-term loans of not as much as $15,000. Loans at under $15,000 are capped at 12 per cent in Connecticut. The Oklahoma tribe filed a movement earlier this in New Britain Superior Court appealing the Banking Department’s ruling month. Continue reading “Banking Department Claims Tribal Payday Lending Organizations Don’t Have Sovereign Immunity”