Article from the Denver Post discussing the nature of certain online lenders and their tribal partnerships. Quote fromthe Colorado attorney general’s office last year these certain “lenders treat the law.”
“They flout it,” Deputy Attorney General Jan Zavislan told The Post. “They think they’re untouchable.”
“Native American partnerships with payday advance companies are solely a practice of some Internet-based lenders who choose not to license themselves in the states in which they operate, but rather rely on the law of a sovereign nation.
“While counsels or scholars may opine about the legality of lender/Native American partnerships, CFSA Best Practices require that all our member companies that offer payday advances through the Internet must be licensed in the state in which the customer resides and that they comply with all applicable state laws.
CFSA believes that our strict set of Best Practices is a business model that ensures strong consumer protections while preserving access to short-term credit.”