Payday loans tend to be exploitative. Tribal payday loans tend to be really exploitative, since those quick cash advances can be made outside the restrictions placed on non-tribal lenders. That means payday loans with annual percentage rates of over 500 percent in some of the worst cases.
This case isn't about the legality of the usurious loans themselves, however. It's about the allegedly illegal practices used to collect on borrowers' debts. And those borrowers are finally getting some good news -- their ability to bring suit challenging debt collection practices is not limited by their loan agreements' arbitration clause, the Fourth Circuit ruled last Tuesday, holding that arbitration agreements cannot categorically reject the "requirements of state and federal law."