Resources

(312) 818-6700

Have a predatory tribal loan? Read this.

Posted by CTM Legal Group | Sep 08, 2020 | 0 Comments

By: Ted Chakos, Associate attorney

Native American tribal lenders frequently claim that they do not have to comply with state lending laws. Those that take that stance generally do not get the necessary licenses to provide consumer loans.  Often these loans will be made with an interest rate of 250%. Sometimes over 500%. In desperate times, consumers turn to these loans because they offer loans that no one else offers. 

In the past few years, states have successfully sued these lenders for injunctions against these predatory loans. Contrary to their claims, tribal loans do have to follow state law. The take-away is this: while these lenders may not be able to be sued for money, they still have to comply with state lending regulations.

What this means for you.

Most consumers who take on tribal loans fall behind on them. This is by design: hardly anyone who takes on loans with such high rates can afford to pay them back.  Frequently these loans get sent off to debt collectors. Since the debt is illegal in the first place, the debt is tough to enforce. Furthermore, if the debt collector attempts to collect on these loans, it will likely violate the Fair Debt Collection Practices Act entitling the consumer to money. 

Common Native American Tribal Lenders

  • Loan At Last
  • Plain Green
  • Cash Advance NOW
  • MAXLEND
  • American Web Loan
  • Radiant Cash

Frequently, when you are applying for a loan online, you will first click on the website, then you will be directed to a lender. If this happened to you, you may have a case against the owner of the website.

If you have any questions about tribal loans or debt collection, talk to a consumer finance attorney today at (312) 818-6700. 

About the Author

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

The CTM Legal Group Is Here for You

At the CTM Legal Group, we focus on Commercial Litigation, Consumer Law, Corporate Law, Criminal Matters, Debt Defense & Bankruptcy, Family Law, Immigration, Labor & Employment, Municipal Law, Probate, Real Estate, Tenant’s Rights, Wills & Trusts, and Workers’ Compensation / Personal Injury and we are here to listen to you and help you navigate the legal system.

Contact Us Today

The CTM Legal Group is committed to answering your questions about law issues in Chicago, Illinois. We offer consultations and we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

Menu