Justia Native American Law Opinion Summaries

Goldenstein, obtained a $1,000 online loan from a company owned by Chippewa Indians, incorporated under Chippewa tribal law, and authorized to issue loans secured by vehicles at interest rates greater than permitted under Pennsylvania law. Goldenstein pledged his car and was charged 250 percent interest. The company, after deducting a $50 transfer fee and wiring $950 to Goldenstein, withdrew installments of $207.90 from Goldenstein’s bank account in June and July. Goldenstein removed funds from the account because he did not recognize the activity on his bank statements. When the company attempted to collect the August installment, it was rejected for insufficient funds. Repossessors took Goldenstein’s car. Goldenstein was told that his payment would not be accepted, nor his car returned unless he signed releases. Goldenstein paid $2,393 ($2,143 for the loan and $250 in repossession fees), signed the releases, then filed suit, claiming violations of the Fair Debt Collection Practices Act, 15 U.S.C. 1692–1692p; Pennsylvania’s Fair Credit Extension Uniformity Act and Uniform Commercial Code; and the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1962(c). The Third Circuit vacated summary judgment in favor of the defendants on the RICO and state law claims, but affirmed as to the FDCPA claim. Forfeiture of collateral can amount to “collection of unlawful debt” under RICO, but defendants had a right to possession and did not violate the FDCPA by repossessing the car. View "Goldenstein v. Repossessors Inc." on Justia Law

The Plaintiffs sued Payday Financial, Webb, an enrolled member of the Cheyenne River Sioux Tribe, and other entities associated with Webb, alleging violations of civil and criminal statutes related to loans that they had received from the defendants. The businesses maintain several websites that offer small, high-interest loans to customers. The entire transaction is completed online; a potential customer applies for, and agrees to, the loan terms from his computer. The district court dismissed for improper venue, finding that the loan agreements required that all disputes be resolved through arbitration conducted by the Cheyenne River Sioux Tribe on their Reservation in South Dakota. Following a limited remand, the district court concluded that, although the tribal law could be ascertained, the arbitral mechanism detailed in the agreement did not exist. The Seventh Circuit held that the action should not have been dismissed because the arbitral mechanism specified in the agreement is illusory. Rejecting an alternative argument that the loan documents require that any litigation be conducted by a tribal court on the Cheyenne River Sioux Tribe Reservation, the court stated that tribal courts have a unique, limited jurisdiction that does not extend generally to the regulation of nontribal members whose actions do not implicate the sovereignty of the tribe or the regulation of tribal lands. View "Jackson v. Payday Fin., LLC" on Justia Law