Tribal Loan Collection Challenges

Summary

Tribal loans often claim sovereignty, bypassing state laws like Massachusetts 20% interest cap. Collections on such loans can be challenged if deemed illegal, but tribal lenders sovereign immunity complicates legal actions. Consult a legal expert for tailored advice.

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Stuck in a loop with tribal loans charging *% interest. I am from Massachusetts, should i not pay these loans as they are illegal?
Hey ****, dealing with tribal loans can be tricky. Here's some general info:
- Massachusetts caps interest rates at *% for most loans.
- Tribal lenders claim sovereignty, often avoiding state laws.
- Not paying can hurt credit scores and lead to collections.
Consider consulting a legal expert for advice specific to your situation.
If a tribe sends a loan to collections for an illegal loan wouldn’t that open them up to lawsuits?
Hey ****, it's a complex situation. Generally, if a loan is deemed illegal under state law, there may be grounds for challenging the debt in collections. However, tribal lenders often claim sovereign immunity, which can complicate legal actions against them. Consulting a legal expert familiar with tribal lending laws is advisable.
Are collections on illegal loans in massachusetts illegal
Case Rating: *
In Massachusetts, collections on illegal loans can be challenged. If a loan violates state interest rate caps or other regulations, it may be considered unenforceable. However, tribal lenders often claim sovereign immunity, complicating the legal process. Consider consulting a legal expert to explore potential legal actions.