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Think Finance says in its motion responding to Payday loan desperate allegations that it provides services to the tribes, and the tribal lenders make short-term online loans from their reservations. Think Finance is not alleged to itself underwrite, fund, or originate any loans to Pennsylvania borrowers. The agreements that borrowers signed with each of the tribes reflect this reality.
The loan agreements are subject to tribal law, and tribal law only. In a separate motion, Rees says loan documents signed by Pennsylvania consumers provide that the transactions are subject to tribal law. This is not the first time regulators have taken on online payday lenders. New York has enforced its ban on payday lending by all but demanding that 117 banks stop processing payments between residents and 35 online payday lenders.
Schneiderman, the state's attorney general, also reached a 20 million settlement with Western Sky, an online payday lending company owned by a member of South Dakotas Cheyenne River Sioux but backed by California-based 300 money loan Call and another company, over allegations of payday loan desperate illegal interest.