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Tribes Fail to Block NY Internet-Loan Action During Case

Tuesday, 01 Oct 2013 01:07 PM

Two American Indian tribes that sued New York state’s top financial regulator over a crackdown on Internet lending businesses, some of which are tribally owned, lost a bid to halt the agency’s actions while the case proceeds.

The tribes’ claims that Benjamin Lawsky, superintendent of the New York Department of Financial Services, is regulating activity taking place on their lands in Oklahoma and Michigan are built on a “wobbly foundation,” U.S. District Judge Richard Sullivan ruled yesterday in Manhattan.

“The state’s action is directed at activity that takes place entirely off tribal land, involving New York residents who never leave New York state,” Sullivan said. The tribes “are not entitled to the extraordinary remedy of a preliminary injunction” blocking the regulator’s actions during the case.

The Otoe-Missouria Tribe of Indians, based in Red Rock, Oklahoma, and the Lac Vieux Desert Band of Lake Superior Chippewa Indians, based in Watersmeet, Michigan, filed the suit.

Lawsky on Aug. 6 ordered 35 online lenders, including at least four tribal companies, to stop offering loans in New York. He also sent a letter to 117 banks, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., requesting their help to block improper lending by cutting off the lenders’ access to the electronic payments system they rely on.

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Two American Indian tribes that sued New York state's top financial regulator over a crackdown on Internet lending businesses, some of which are tribally owned, lost a bid to halt the agency's actions while the case proceeds.
Indian,tribes,online,lending
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2013-07-01
Tuesday, 01 Oct 2013 01:07 PM
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