Babaamaajimowinan (Telling of news in different places)

Colorado Settles With Firm That Tried to Collect Native Loans at 500% Interest Rates

A settlement between the state of Colorado and Kansas-based debt collector TrueAccord will refund $500,000 to borrowers who defaulted on loans issued by tribal lending entities.

According to the settlement, investigators found that, from 2017 to 2022, TrueAccord collected or attempted to collect on roughly 29,000 consumers who defaulted on loans issued by the tribal lenders. Most loans had interest rates over 500% APR, and some approached 900% APR—far greater than the 12% cap for unlicensed loans under Colorado law, according to a statement from the state’s attorney general.

Tribal lenders typically operate online and advertise to consumers that their loans are subject to tribal law, rather than Colorado law.


Reader Comments(0)

Rendered 04/12/2024 19:29