June 13, 2018 / 12:57 AM / 6 months ago

Lawsuit accuses Big Picture Loans of 'rent-a-tribe' scheme

Online Michigan lender Big Picture Loans has been hit with a proposed class action accusing it of participating in a “rent-a-tribe” scheme, using tribal sovereign immunity to try to evade liability for charging illegally high interest rates.

Filed Monday in San Jose federal court, the lawsuit accuses Big Picture Loans of violating usury laws in California, Ohio, Wisconsin and Texas and the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO), which bars the collection of unlawful debt. The loans are unlawful because their interest rates exceed state legal limits, according to the lawsuit, filed by borrowers from the four states.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2yfLi2v

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