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State Payday Lending News Part II: Oregon Warns Tribal Payday Lenders to Back Off

posted by Nathalie Martin

A little something more to chew on while you are chewing off your fingernails over tonight’s election news. As reported on Turtle Talk this morning, Oregon and Washington are none too pleased about tribal payday lenders making loans to citizens of their state, in contravention of their state usury laws. Online tribal payday lenders are setting up shop on Native land in order to get the benefits of sovereign immunity, as Josh Schwartz and I wrote about in our Washington and Lee Law Review article.

According to a story posted on a Portland Oregon tv web site, tribal loans are now at the center of a legal battle at the highest levels of the U.S. Government. An Oregon senator is now trying to push a bill that he authored through the U.S. Senate, which would provide that lenders may not operate out of a tribal reservation or overseas, or anywhere else, if the resulting loans violate of state laws. If this federal bill became law, the Consumer Fraud Protection Bureau would have the power to stop the lending.The turtle talk post also linked to a warning to consumers posted by the Oregon Division of Finance and Corporate Securities. This link contains a partial list of the tribal payday lenders.

Comments

How can someon back off payday loans when they are being used by such a big number of people every day. There are amny people are involved with them so tight that it became an addistion to them. Some would think that they ar esick people, maybe you are right. But also maybe here is another point. Maybe our government made it impossible to live from one paycheck to another one. This is a real problem. I do agree that many use payday loans as a way to buy another pair of shoes...but frankly I still think the majority uses this service simply because they need to feed, they need to dress and so on and so far.

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