DBO Wins Landmark Ca Supreme Court Ruling in Significant Tribal Payday Lending Case

DBO Wins Landmark Ca Supreme Court Ruling in Significant Tribal Payday Lending Case

Court Bolsters Test to determine when firms that are private to Tribal Immunity

SACRAMENTO – The Ca Department of company Oversight (DBO) today won circumstances Supreme Court decision in a landmark situation relating to the problem of private lenders that are payday attempt to utilize tribes’ sovereign immunity to prevent state certification and consumer security regulations.

“This ruling is a win that is important California’s payday loan consumers,” said DBO Commissioner Jan Lynn Owen. “It strengthens our capacity to enforce guidelines prohibiting exorbitant costs and unlicensed task by doubting payday lenders’ power to inappropriately utilize tribes’ sovereign immunity in order to avoid complying with state legislation.”

The court established an analysis that is detailed determining when affiliated entities are rightfully eligible for a tribe’s sovereign immunity. Utilizing that test, which makes up about both the proper execution and purpose of tribes’ relationships with affiliated entities, the court ruled the defendants “are perhaps not eligible to immunity that is tribal in the record before us.”

The Miami Tribe of Oklahoma and Santee Sioux Nation of Nebraska formed affiliated payday lending entities that did business in California in the case. Continue reading “DBO Wins Landmark Ca Supreme Court Ruling in Significant Tribal Payday Lending Case”