HARRISBURG вЂ” In an important ruling involving a lender and investment company accused of вЂњrentingвЂќ Native American tribes for a quick payday loan scheme in Pennsylvania, Attorney General Josh Shapiro announced today a federal judge has permitted the core of case filed by the Attorney General to go ahead. The Attorney GeneralвЂ™s lawsuit alleges that Victory Park Capital Advisors LLC, invested and took part in a scheme with Think Finance Inc. to shield itself from state and federal guidelines by running beneath the guise of a Native American tribe as well as a bank that is federally-chartered. U.S. District Judge J. Curtis Joyner has rejected nearly all of a defense motion to dismiss the lawsuit, ensuring the full situation will continue.
вЂњThese defendants utilized a Native US tribe as a front to evade state consumer security rules and cost higher cash advance rates of interest than allowed under Pennsylvania legislation,вЂќ Attorney General Shapiro said. вЂњWe filed suit to put up them accountable, weвЂ™re pleased utilizing the courtвЂ™s ruling, and today our instance moves forward.вЂќ
Victory Park argued that given that it had no physical tie to Pennsylvania and all the activities it took part in happened outside Pennsylvania, the court had no jurisdiction therefore the claims ought to be dismissed.
Judge Joyner disagreed, keeping that the workplace of Attorney General lawsuit and litigation has been doing sufficient to show the investment firm took part in a scheme that targeted Pennsylvania residents вЂ“ establishing jurisdiction.
вЂњThe function of the scheme that isвЂrent-a-tribe to focus on clients in states, such as for example Pennsylvania, which otherwise might have forbidden the Defendants from providing the pay day loans at problem,вЂќ the judgeвЂ™s ruling states. Continue reading →