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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 cash advance loans in atlanta 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 advance cash farmington nm has been rattled by other recent federal actions, including a round of civil subpoenas issued last year by the Consumer Financial Protection Bureau.
The Justice Department later became involved in the investigation, according to industry members familiar with the probe who spoke on condition of anonymity to avoid fueling tension with federal authorities. CFPB spokeswoman Moira Vahey said the agency does not comment on or confirm pending enforcement action. She said the agency is looking at a wide range of issues involving payday lending and potential consumer harm, including the growing presence of online payday loans.
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