Indian tribes are refusing to comply with a New York financial regulator’s attempt to shut down their online-lending operations, arguing the state has no authority and is trying to block legal businesses.
Tribes that make loans over the Internet are planning to challenge Benjamin M. Lawsky, superintendent of New York’s Department of Financial Services, in tribal or federal court later this month.
“We are considering every legal avenue that we could possibly take,” said Robert Rosette, an Arizona lawyer who represents them.
Last week, Mr. Lawsky ordered 35 online and tribal lenders to stop offering “illegal payday loans” in New York.
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