So, let’s back up a bit…
If you didn’t already know, a payday loan is a short-term loan given to people who are in a desperate financial situation. The loan (which can be received in-store or online) is meant to just cover you until your next payday (hence the name) and it has extremely high-interest rates, fees, or penalties attached to it if you don’t pay the loan back in time.
Because a lot of these loans engage in deceptive and immoral business practices (targeting struggling communities of color, aggressive collection efforts, overcharging borrowers, etc…) they use tribal affiliations to excuse their actions.
Why would a payday lender use tribal affiliations?
When a payday loan company claims tribal lending, they’re claiming immunity and sovereignty in the same way Native American tribes take advantage of their special legal status in America.
However, the tribal immunity defense may have run its course.
Government agencies such as the FTC, CFPB, US Court of Appeals for Second Circuit, etc… have either thrown out lawsuits from payday lenders going after consumers or have ruled that payday loan practices are in fact out of compliance with state or federal law (for usury, licensing, collection practices and other violations).
Where do you go from here?
If you’re struggling with payday loan debt and your payday lender is using the tribal immunity defense to violate your rights as a consumer, give Reliable Debt Consultants #754-229-0660 a call for free consultation and we’ll help you through the process of resolving your payday loan debt.