Ca company regulators are stumbling within their efforts to locate and ban an unlicensed kind of high-interest credit: pay day loans available on the web.
The state Department of Corporations has been trying to force these Internet-only businesses to adhere to the same rules that govern the state-licensed payday loan stores that offer short-term, unsecured loans of up to $300 for three years.
However, many of those online loan providers -- without any presence that is physical their state and run as tribal entities outside of Ca -- state they have been Indian-owned companies, connected to sovereign Indian countries and resistant from state legislation.
вЂњThese are businesses, and are operated in line with federal legislation,вЂќ said John Nyhan, a l . a . lawyer for just two out-of-state Indian tribes whose loan operations are now being targeted by Ca regulators.