Connecticut law caps interest rates at 12%. But Great Plains Lending, affiliated with a Native American tribe in Oklahoma, is hawking payday loans by web and mail with rates of 200-400%, according to WTNH.com, reporting from Hartford, Conn. In response, the Connecticut legislature is crafting legislation to prevent residents from being held liable for more than 12%.
This appears to be a promising response to the problem of "rent-a-tribe" payday loans, where lenders operate on tribal land in an effort to avoid state rate caps. If states can't regulate lenders because of tribal sovereignty, they can at least limit what their own residents must pay.
The story is here.