Tribal Lenders Say They Can Charge Over 600% Interest. These States Stopped Them.
Online lenders tied to Native American tribes argue that they aren’t subject to state lending laws, but they backed away from operating in six states where attorneys have acted forcefully to protect consumers.
That sounds absolutely wild. I read "up to" 400% Was that a worst case scenario or was it wide spread? It would be helpful to see more data. Like, if they were charging 18-20% regularly or something.
And Ftr, fuck lending institutions and the conditions that have created them.
It was probably common but these are typically short-term "payday loan" type deals that you're expected to pay back in a week or two. 400% APR comes out to 7.69% per week.
These things are an absolute trap because if you don't have $300 or whatever to cover your bills this paycheck, you definitely aren't going to have $380 two weeks from now to pay it back and that's precisely where you get steamrolled.
How about saying which states, rather than posting a clickbait headline?
Connecticut, Arkansas, New York, Pennsylvania, Virginia, and West Virginia
Thank you, Slatlun. It's a pet peeve of mine. I read somewhere that not rewriting article headlines is a holdover from some subreddits who prohibited the practice.
