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Connecticut Banking Regulator Fines Tribal Payday Lenders

January 9, 2015

On January 6, the Connecticut Department of Banking issued a cease and desist order against the head of an American Indian tribe and two payday loan companies owned by the tribe for allegedly violating a state cap on interest rates. The order requires (i) the two companies pay a combined civil penalty of $800,000 and (ii) that the head of the tribe pay a civil penalty in the amount of $700,000.This action is considered to be the first enforcement action ever against the leader of a Native American tribe.