Buckley Sandler LLP on 29th June published an article saying that the US DoJ had filed 2 forfeiture complaints, which cover agreements with 2 Native American tribes to forfeit a combined $3 million in profits made from their involvement in an allegedly fraudulent payday lending scheme.  Payday loans are small loans subject to regulation at the state level in the US.  Many states also have criminal usury laws to protect consumers.  18 states and the District of Columbia prohibit extremely high cost payday lending, 3 states permit lower-cost payday lending and 32 states allow higher-cost loans.  Some states impose other limits, e.g. Washington limits borrowers to 8 payday loans per year.

For more information on US payday lending, see –

Both the tribes involved are said to have also acknowledged as part of the settlements that they were used as a way to sidestep state usury laws — tribes answer only to the federal government, which doesn’t have a usury statute for payday loans.  They are said to have been linked to Scott Tucker, 56, who is currently serving a 16-year jail sentence

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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