The Washington Post has a lengthy article today on payday lending by American Indian tribes.
With some two-dozen tribes now offering installment and payday loans, Native Americans have found themselves wrestling with the merits of this lifeline. Following the formula used in casino gambling, tribes capitalize on their right to govern themselves in an otherwise tightly regulated industry. Only in this case, revenue is earned from borrowers who are charged interest rates that sometimes are double what they’d find in a brick-and-mortar payday store. Some Castle Payday borrowers can find themselves facing $8,000 in financing fees on a $1,000 loan, even if they make payments on time. The lending is conducted exclusively online.
The full article is here.
