Kelly Guzzo, PLC, has filed dozens of class actions against tribal lending entities that make high-interest loans to consumers. Over the past several years, our cases have resulted in the return of more than $100 hundred million dollars to consumers and the cancellation of more than $1 billion dollars of debt. We are currently investigating a new case against Boost Credit Line, which holds itself out as owned and operated by the Mechoopda Indian Tribe of Chico Rancheria. It appears that Boost Credit Line is making loans to consumers in excess of 650%, which would violate the usury laws of every state.
Many companies, like Boost Credit Line, have attempted to use the tribal lending model to provide cover for their high-interest loans. In this scheme, a payday lender recruits a Native American tribe to establish a tribal business entity to operate as the nominal, originating lender to create a tribal veneer for the business. Although the loan contracts and websites claim that the tribe owns and operates the lending entity, often it is a non-tribal payday lender who actually operates the business, including the marketing, underwriting, origination, financing, and collection of loans.
State usury laws protect consumers from these high-interest, predatory lending products—even if they are supposedly made by a tribal lending entity. For example, absent certain exceptions, Virginia law prohibits the payment of interest on loan at a rate that exceeds 12% per year. Similarly, California law prohibits the payment of interest on a loan that exceeds 10% per year.
Over the past decade, Kelly Guzzo, PLC has represented consumers against individuals and businesses engaged in usurious lending, including those using the tribal lending model. If you have taken out a high-interest loan with Boost Credit Line we can evaluate your rights. There is no out-of-pocket cost for these services and we only recover if you do. Please contact us if you have received a high-interest loan.
