Tribal Suit Threatens Novel NY Plan To Fight Payday Loans

Law360, New York (August 22, 2013, 8:02 PM EDT) -- New York’s effort to halt online payday lending faces a new challenge from Indian tribal lenders claiming violations of their sovereignty, an attack experts say could block other states from using New York’s novel tactic of pressuring banks to stop processing the loans.

The New York Department of Financial Services announced in early August that it had sent cease-and-desist letters to 35 online payday lenders ordering them to stop offering their loans in the state, which bans that type of short-term, high cost credit. Along with...
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