Payday Lenders and Indian Tribes Partner to Beat State Restrictions

The payday lending industry has taken many a hit over the past couple of years as state after state impose limitations on the interest rates charged that made this such a lucrative business. Now, some payday lenders have found a new strategy that allows them to overcome local restrictions: partnering with American Indian tribes.

Industry expert Jer Ayler told WalletPop that online payday lenders that partner with tribes are able to take advantage of the tribe's sovereignty, allowing them to disregard states regulations.