Connecticut’s Department of Banking has figured two lending that is payday owned by the Otoe-Missouria Tribal Nation aren’t protected by sovereign immunity and certainly will be pursued by the division for violating Connecticut’s lending guidelines. Banking Commissioner Jorge Perez concluded May 6 that the 2 businesses, Great Plains and Clear Creek, are not arms associated with tribe and that its Chief John Shotton “does not have tribal sovereign immunity from either the financial charges or prospective injunctive relief.”
The underlying allegation is that the firms violated the state’s small loan legislation by charging Connecticut borrowers annual interest rates which range from 199.44 per cent to 448.76 percent on short-term loans of less than $15,000. Loans at under $15,000 are capped at 12 % in Connecticut. The Oklahoma tribe filed a motion earlier in the day this in New Britain Superior Court appealing the Banking Department’s ruling month.