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Calif. Justices Clarify When Tribal Businesses Are Immune

Calif. Justices Clarify When Tribal Businesses Are Immune By Suevon Lee Los Angeles (December 22, 2016 The California Supreme Court on Thursday clarified the legal standard for when tribe-affiliated entities can establish legal immunity, holding that payday lenders affiliated with two tribes are not shielded from allegations they engaged in abusive practices. In a 42-page opinion, the state's highest court set forth a detailed analysis of the legal standard for establishing immunity for tribe-affiliated businesses. The decision relates to payday lending entities associated the Miami Tribe of Oklahoma and the Santee Sioux Nation in Nebraska, which did business in California and nationwide. The tribes formed businesses called Miami National Enterprise Inc. and SFS Inc. that contracted with a private firm and operated under the names Ameriloan, United Cash Loans, U.S. Fast Cash, Preferred Cash and One Click Cash. The California Department of Business Oversight sued the businesses in 2006, alleging they were violating the state’s payday lending statute by charging excessive fees, operating without a license and using threats to collect payments.

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