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What is the situation with "tribal" lenders - I know there are several. The one I'm beginning to deal with is Redstone. I'm in CA and as far as I can tell they are not licensed in my state. I understand they claim immunity from state laws. I stopped an ACH transfer to them today and will be sending them a letter (they are impossible to reach by email) but I know the phone calls will start coming from them next week. What is the best of course of action in dealing with them?




Tribal lenders can tell you Elvis is President but it doesnt mean it is true!
If they are not following california rules and regs, they are illegal.

I would recommend closing your bank account....illegal lenders find their way around blocks.

Sub: #1 posted on Fri, 08/12/2011 - 09:29

SOAPLADY SOAPLADY
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(Posts: 17208 | Credits: 4746)

I just ran across this article from the Wall Street Journal regarding tribal lenders.

http://online.wsj.com/article/SB10001424052748703716904576 134304155106320.html

Sub: #2 posted on Fri, 08/12/2011 - 12:07

jnichols jnichols

(Posts: 10 | Credits: 4.07)

it is an interesting article but from what I have been told by the Fl office of financial regulation is that though they cannot stop them from making the loans to FL residents they can stop them from collecting on them. As FOFR stated if you choose not to pay them they would then have to sue you for the money. The only way they can do that is to take you to court where you live at which point the tribal laws no longer work. It is a catch 20 situation for the tribal lenders they can lend to anyone they want without fear of the states being able to stop them but at the same time if they try to collect in a state in which they did not have a license they are pretty much screwed.

Sub: #3 posted on Sat, 08/13/2011 - 12:36

tousi76 tousi76

(Posts: 141 | Credits: 23.33)

I'd do as soaplady says, close your checking account or at least put it on deposit only status. These companies operate under several different names and even if you have an ACH block on one name, they might still use another.

Sub: #4 posted on Mon, 08/15/2011 - 05:56

ugglywump ugglywump

(Posts: 30 | Credits: 7.97)

I wwould definetly close my checking accounts or they will attempt to go in there under another name even post checks like you have written them! Protect your money close the accounts let the bank manager know what is going on. I would even change accounts and don't give out any information!

Sub: #5 posted on Mon, 08/15/2011 - 08:25

danettere danettere

(Posts: 281 | Credits: 57.34)

Seems to be another echo in here....

Sub: #6 posted on Mon, 08/15/2011 - 09:10

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17208 | Credits: 4746)

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