Native American tribes are asking New York State’s top banking regulator to leave their payday loan businesses alone.
Regulator Ben Lawsky sent cease-and-desist letters last week to 35 lenders and 112 banks providing or facilitating short-term, high-interest payday loans to consumers online. The letters claim that the businesses charge interest rates far exceeding New York’s cap of 25 percent annually, putting them in violation of the law.
Although many of the companies are not incorporated in New York, Lawsky claims jurisdiction because some New Yorkers purchased the loans.
Many of the targeted lenders are run by Native American tribes, which do not fall under federal or state jurisdiction.
Read the full story here: http://dailycaller.com/2013/08/11/ny-finance-official-on-the-warpath-against-native-american-payday-lenders/
