As the resistance of TLEs is considerably beyond cavil, the "action" in litigation on the tribal model has managed to move on through the tribes and their "arms" to non-tribal financiers, servicers, aiders, and abettors. Discovery for the information on the economic relationships between TLEs and their financiers is a vital goal of these state-court procedures by regulators, because the non-tribal "money partners" associated with TLEs almost certainly cannot assert immunity that is tribal. The major danger to such financiers is recharacterization since the "true" loan provider in another of these plans.
Ahead of the enactment for the Dodd-Frank Act (the Act), federal enforcement of substantive customer financing guidelines against non-depository payday lenders had generally speaking been restricted to prosecution that is civil the Federal Trade Commission (FTC) of unfair and deceptive functions and techniques (UDAP) proscribed by federal legislation. Though it might be argued that unfair techniques had been included, the FTC failed to pursue state-law usury or rollover violations. (more…)