) — the initial nature of indigenous American reservations, as lands that run as “tribal enterprises” with sovereign legal rights, has generated a growth in so-called payday loan companies chartered here.
Proponents and opponents alike of these loans, and comparable alternative financing offerings, are viewing to see whether or not the Dodd-Frank Act and its particular slate of economic reforms will rein such enterprises which have mostly escaped the reach of state regulators and customer financing rules.
Tribal-Land Pay Day Loans Spark Reservations
The argument waged by these online payday lenders is the fact that sovereign-nation status of tribal lands provides them resistance to state payday loan regulation such as for example rate of interest limitations.