Feds fee Indian tribal loan providers for unlawful methods
Four online loan providers owned by the tiny north California Habematolel Pomo Indian tribe charged interest that is triple-digit on small-dollar loans and used aggressive strategies — including debiting customer bank reports — to get. But, federal regulators sued Thursday, saying the costs and interest costs had been therefore exorbitant that they violated lending legislation in 17 states.
Golden Valley Lending, Silver Cloud Financial, Mountain Summit Financial and Majestic Lake Financial deceived customers by gathering debts that weren’t legitimately owed since they violated interest or cost caps in Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, brand New Hampshire, nj-new jersey, brand brand New Mexico, ny, new york, Ohio and Southern Dakota, relating to a problem filed Thursday because of the Consumer Financial Protection Bureau. (more…)