Payday Loans by Indian Tribes

Payday Loans by Indian TribesGetting a payday loan from Indian Tribes is becoming more and more of a likelihood as several of these lenders have popped up in recent years. They expressly state on their sites that they are sovereign nations working within the United States, which leads many to wonder if there are any benefits or drawbacks to using their service.

Indian tribes are given a special status by the US government and are allowed to do things on their reservations that other business owners are not able to, which is why you’ll find tribal-owned casinos sprinkled across the country. In recent years they’ve taken to the Internet and started offering the equivalent of payday loans and online loans on websites.

As a consumer you might wonder if there is any reason why you should or shouldn’t do business with a lender that is owned by an Indian tribe. That’s why we went to work to see what, if any, benefit there is to doing business with this type of lender. At this point we’ve analyzed hundreds of payday lenders, online loan websites, and dozens more lenders of different types, so we feel that we’re uniquely poised to give you the heads up.

Benefits of Payday Loans by Indian Tribes

The main benefit to doing business with an American Indian owned lender would be that they wouldn’t have to adhere to the borrowing limits set in place by state laws. This would mean that they could lend you more money than you would be able to get at other lenders. You might also be able to get a better rate, since they will not be forced into setting their rates at state mandated limits either. But from our research their rates are the same as or worse than you can find at traditional lenders.

No Taxes Paid
Just like an Indian-owned casino an Indian-owned lender isn’t required to pay any federal or state taxes. This might leave a bad taste in your mouth as they’re doing nothing to help out with the tax burden that we should all be responsible for. State taxes directly help out with necessary services that we all benefit, and regardless of how inefficient the federal government might be, there are some programs that we all benefit from, and so paying taxes should be everyone’s burden, including businesses of all types.

No Consumer Protection Laws
By being a sovereign entity they also aren’t required to obey the consumer protection laws that are put into place to protect consumers from unruly business practices. This means that it is up to the individual lender to decide how they will run their business. This mans that it’s basically a roll of the dice that you will end up at a lender that chooses to behave ethically and treat you right without any sort of enforcement to do so.

No Recourse
If you do wind up having a bad experience, there’s no way that you could file an official complaint or take them to court. They are basically lawsuit proof, and therefore they have the leverage when it comes to any sort of dispute that arises. This might leave a bad feeling in the back of your mind, as you realize that you truly are getting into a binding agreement, but that it’s only binding in one direction.

It’s important to note that you probably waive your right to a lawsuit with any other lender that you do business with. It’s usually included in the fine print of the loan agreement that you will not be able to bring a claim against them and all disputes have to go through mediation. So it’s not such a big thing, but it might irk some people to know that they are basically doing business with a company that is above the law.

Overall there’s not a lot of good reasons to specifically choose a loan from Indian tribes over other lenders. They seem to have all of the advantages, and from the tribal lenders that we looked at they don’t seem to pass these on to the borrower, it’s just something they keep for themselves to help their bottom line.

Add Your Own Experience to Our Payday Loans by Indian Tribes Discussion Below

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