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Many companies in this growing market have evaded state and federal consumer protections by operating from Indian reservations. Tribal sovereignty puts them beyond the reach of U. regulators, they argue. Tribal lenders. Tribal lenders were outraged by New Yorks order to stop making loans there, saying it violates their constitutionally protected right to set and enforce their own regulations.

Years of precedent set by the federal government are being thrown out the window by overzealous regulators looking to further quick easy loan approvals tribal nations and breach our sovereign rights, said Barry Brandon, executive director of the Native American Financial Services Association, a trade group, in a statement. Brandon said the lending companies are wholly owned by the quick easy loan approvals and provide needed income for community development.

Yet some lenders that claim sanctuary on Native American land operate for the profit of outside businessmen who run them through a labyrinth of shell companies, according to an earlier investigation by the Center for Public Integrity. The Center found in 2011 that millionaire Scott Tucker operated and profited from payday businesses that were owned on paper by small Indian tribes - a practice known as rent-a-tribe.

Tuckers businesses are not affiliated with the NAFSA, the trade group representing tribal lenders.

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References: Avoid Dangers of Car Title Loans Financial Web. Accessed February 17, 2016. https:www. finweb. comloansavoid-the-dangers-of-car-title-loans. htmlaxzz3zhpCrDsG FAQs Texas Fair Lending Alliance. Accessed February 17, 2016 https:www.

texasfairlending. orgresourcesfaqs Walsh, Ben. Texas Is Throwing People in Jail for Failing to Pay Back Predatory Loans.

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