PayDay Loan Ruling: Connecticut Sovereign Nation Status

The state of Connecticut’s banking department must decide whether to appeal a ruling that appears to allow an Oklahoma Indian tribe to continue to offer payday loans in Connecticut. The Otoe Missouri Tribal Nation brought a lawsuit claiming tribal sovereignty protects it from Connecticut usury rate enforcement, after the Connecticut banking department determined the Otoe Missouri Tribal Nation had violated state loan laws. The Otoe Missouri Tribal Nation offres payday loan products having interest rates of more than 400 percent APR’s. However, a superior court judge has found in the tribe’s favor saying “its rights have been prejudiced.”

And the beat goes on…