The government won a major victory last month when a federal magistrate ruled that for-profit companies are not necessarily immune from federal consumer protection laws merely because they are affiliated with Indian tribes. The ruling by a magistrate must still be approved by a district court. If that happens, the ruling will have broad implications for all federal enforcers seeking to combat illegal payday lending practices, said Jessica Rich, director of the FTCs consumer protection bureau.
The court has not yet determined whether some of the lenders, officially chartered by Indian tribes, are for-profit corporations and therefore subject to FTC oversight. The companies sense of security on Native American land has been rattled by other recent federal actions, including a round of civil subpoenas issued last year by the Consumer Financial Protection Bureau.
The Cash loans el paso texas Department later became involved in the investigation, according to industry members familiar with the probe who spoke cash advance sherman oaks condition of anonymity to avoid fueling tension with federal authorities.
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