U.S. Court upholds FTC jurisdiction over "Indian" payday loan schemes
In an FTC lawsuit targeting illegal payday loan operations which have affliated themselves with American Indian Tribes, the United States District Court for the District of Nevada has upheld an earlier recommendation finding the FTC has the authority to bring suit against Indian Tribes, arms of Indian Tribes, and their employees and contractors. The FTC had previously sued a web of defendants ultimately controlled by Scott Tucker. Part of the lawsuit was settled in July, 2013 after an agreement barring the settling defendants from using threats of arrest and lawsuits as a tactic for collecting debts, as well as a prohibition against requiring all borrows to agree in advanced to electronic withdrawals from their bank accounts as a condition of obtaining credit.
As a result, the Court find that Judge Ferenbach correctly found that the FTC Act is a federal statute of general applicability that under controlling Ninth Circuit precedent grants the FTC authority to regulate arms of Indian tribes, their employees, and their contractors.
United States District Judge Gloria Navarro, in adopting Magistrate Judge Ferenbach's previous recommendation, found the FTC Act is a federal statute of general applicability that grants the FTC authority to regulate arms of Indian tribes, their employees, and their contractors.
Our firm continues to investigate predatory lending by online lenders claiming sham status as part of American Indian tribes, and has filed suit on behalf of consumers against the operators of the organization named in the FTC lawsuit.