Payday lender Green Arrow Solutions faces class action lawsuit over Indiana high-interest loans

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A proposed class action lawsuit alleges that payday lender Green Arrow Solutions, which claims to be affiliated with a Native American tribe in Lake County, California, lent money to Indiana residents at usuriously high interest rates excessive, in violation of state law.

The 16-page filing says that neither Green Arrow, which claims to be an entity created and owned by the Big Valley Band of Pomo Indians of the Big Valley Rancheria, nor its individual operators or alleged co-conspirators are actually affiliated with the tribe. and therefore cannot use the tribe’s sovereign immunity as a shield against Indiana’s usury laws.

The lawsuit alleges that Green Arrow offers loans to Indiana residents at interest rates in excess of 700% per annum. The complaint accuses Green Arrow, Integra Financial Services, Nevada Impact Management and two individuals of violating Indiana’s Consumer Credit Code and the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.

According to the case, Green Arrow’s actual loan operations are conducted in locations other than tribal lands, Utah, and no member of the Big Valley Band of Pomo Indians is significantly involved in Green Arrow’s loan activities. the company. Additionally, the profits Green Arrow makes from its lending business are received by non-tribal members, the lawsuit says.

From the complaint:

“These so-called ‘tribal lenders’ generally do not survive scrutiny when examined closely, as virtually all business functions are conducted away from tribal lands, by non-tribal members, and massively benefit non-tribal members. tribal to such a degree that tribal involvement is effectively nil. .

When non-tribal individuals and entities control and manage the substantive lending functions, provide the loan capital necessary to support the operation, and bear the economic risk associated with the operation, they are in effect not “exploited” by Native American tribes and, therefore, are not protected by sovereign immunity.

Plaintiff, a resident of Johnson County, Indiana, claims to have borrowed $300 from Green Arrow at an annual interest rate of over 775%. Paying the loan at that interest rate would have resulted in Green Arrow receiving $785, including more than $485 in interest alone, according to the lawsuit.

In Indiana, the maximum interest rate that can be charged on most types of consumer loans is 36% per annum, according to the case.

The lawsuit seeks to represent all persons with addresses in Indiana who have been granted a loan in the name of Green Arrow Solutions or Green Arrow Loans at more than 36% interest within the past four years.

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