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Connecticut probes Oklahoma tribe’s pay day loan organizations

Connecticut probes Oklahoma tribe’s pay day loan organizations

An Oklahoma Indian tribe that the Connecticut Department of Banking claims operates two high-interest loan operations to benefit from strapped urban residents, has won at the least a wait in its battle against imposition of $800,000 in charges.

Although the tribe views the current state Superior Court ruling as a victory, it’ll be up into the banking division to check out other problems and determine whether or not to pursue further.

A judge recently remanded the problem back once again to the division. In the event that division desires to pursue its instance contrary to the Otoe Missouria Tribe, of Red Rock in north-central Oklahoma, Banking Commissioner Jorge Perez would need certainly to investigate further the links involving the two businesses, Great Plains Lending, LLC and Clear Creek Lending.

The businesses have already been providing alleged payday advances of between $100 and $2,000 — at interest levels of over 400 per cent.

State legislation limits interest levels to 12 % for loans under $15,000.

Payday lenders generally provide tiny, short-term loans with little to no or no collateral, usually to metropolitan dwellers and low-income residents whom reside from paycheck to paycheck.

The department claims the entities, which charge interest ranging from 199 percent to 420 percent on loans, reach beyond the tribal protections while the tribe contends their federal sovereign immunity protects them from the state.