Ca company regulators are stumbling inside their efforts to get and ban a form that is unlicensed of credit: pay day loans available on the net.
The state Department of Corporations has been trying to force these Internet-only businesses to adhere to the same rules that govern the state-licensed payday loan stores that offer short-term, unsecured loans of up to $300 for three years.
But some of those online loan providers — with no presence that is physical their state and run as tribal entities outside of Ca — state they have been Indian-owned companies, associated with sovereign Indian countries and immune from state legislation.
вЂњThese are businesses, and they’re operated in keeping with federal law,вЂќ said John Nyhan, a l . a . lawyer for two out-of-state tribes that are indian loan operations are increasingly being targeted by Ca regulators. вЂњThey have resistance from suit by the state.вЂќ
The concept that is legal of Indian tribes as sovereign countries over and over happens to be upheld by the U.S.