The Second Circuit Court of Appeals affirmed an earlier decision by the District Court for the Southern District of New York. In August 2013, the State of New York issued cease-and-desist orders to more than 35 payday lenders offering and making internet loans to state residents at annual interest rates in excess of 300 percent – more than 10 times higher than what is permitted by New York state law. Beyond tribal lenders, these loans also included foreign ones with stateside headquarters where no interest rate caps existed for short-term loans. New York officials also alerted banks and other financial services companies of the illegal activity and asked them to ensure they were not facilitating electronic transfers of illegal loans. Two payday lenders associated with two federally-recognized Indian Tribes subsequently sued New York, seeking to prevent the state’s demands for compliance with the law. Instead, the District Court decided that New York’s actions were appropriate.
Posted on: Thu, 02 Oct 2014 20:11:46 +0000
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