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Attorney General Shapiro Announces a Profit in the event against Investment company involving “Rent-a-Tribe” Payday Lending Scheme

Attorney General Shapiro Announces a Profit in the event against Investment company involving “Rent-a-Tribe” Payday Lending Scheme

HARRISBURG — In an ruling that is important a lender and investment company accused of “renting” indigenous 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 because of the Attorney General to maneuver forward.

The Attorney General’s lawsuit alleges that Victory Park Capital Advisors LLC, invested and took part in a scheme with Think Finance Inc. to shield it self from state and federal regulations by running beneath the guise of an indigenous American tribe as well as a federally-chartered bank. U.S. District Judge J. Curtis Joyner has rejected almost all of a denied nearly all of a defense movement to dismiss the lawsuit, ensuring the situation will continue.

“These defendants utilized a native tribe that is american a front to evade state customer security laws and regulations and fee greater pay day loan rates of interest than allowed under Pennsylvania legislation,” Attorney General Shapiro stated. “We filed suit to keep them accountable, we’re pleased with the court’s ruling, and today our situation moves forward.”

Victory Park argued that as it had no real tie to Pennsylvania and all sorts of those activities it participated in occurred outside Pennsylvania, the court had no jurisdiction as well as the claims must certanly be dismissed.

Judge Joyner disagreed, keeping that the workplace of Attorney General lawsuit and litigation has been doing adequate to show the investment company took part in a scheme that targeted Pennsylvania residents – establishing jurisdiction.