State sues California-based Web loan provider, claims it makes use of tribe being a front side for high-rate loans
By Jennifer Bjorhus , Celebrity Tribune
Minnesota regulators are, for the time that is first challenging a training in which A web lender is presumably hiding behind tribal sovereign resistance to skirt state guidelines.
Case filed Thursday against California-based CashCall Inc. takes aim during the rent-a-tribe occurrence, which Attorney General Lori Swanson described in an meeting as “an emerging issue” which has come under fire somewhere else.
The problem, filed jointly by Swanson and state Commerce Commissioner Mike Rothman, accuses CashCall and subsidiaries WS Funding and WS Financial of participating in a “elaborate ruse” to deceive borrowers and regulators and fleece all of them with illegally high prices on online loans.
An attorney for the business would just state the lawsuit contains inaccuracies.
This is the state’s first lawsuit against an Internet lender for allegedly hiding behind a reservation to evade state consumer protection laws while Swanson has campaigned against Internet consumer lenders making expensive short-term loans, suing several in recent years.
The rent-a-tribe arrangement has emerged as mounting laws squeeze the company of supplying consumer that is expensive on the internet and loan providers look for brand brand new how to ply their wares. More