[Jack Hammer]

I was under the impression that loan sharking was against the law, and that there were federal statutes governing - and severely penalizing - usury.

How is it that this business is allowed to exist?

[cableguymn]

It’s an Indian group on a reservation. State/federal laws don’t reach that far.

Their rates are on par with most payday loan companies. However, their maximum amount is much higher.

[FLAMING DEATH]

They’re not considered “white’.

[freeandfreezing]

I was under the impression that loan sharking was against the law, and that there were federal statutes governing - and severely penalizing - usury.

Actually not. A number of years ago lobbyists from major banks succeeded in amending the federal banking laws to allow them to conduct interstate business under terms that would violate state anti-usury laws. That's why credit cards are issued from places like South Dakota or Delaware since those states don't have strict anti-usury laws.

The net result is mainstream credit card companies charging rates that would have been illegal forty years ago. It is ironic that banks today insist that there would be no credit available to anyone if they couldn't charge such high rates, but they were successful for many years under the state anti-usury laws.

We can thank the federal government for legalizing loan sharking.

[Sequoyah101]

Being stupid is not against the law so why should usurious interest rates be?