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12:00 pm
Tue April 3, 2012

Federal suit over pay-day loans names two Oklahoma tribes

OKLAHOMA CITY (AP) — The Federal Trade Commission has filed a lawsuit against several Oklahoma tribes, claiming their payday loan companies are operating illegally.

The commission filed the complaint Monday against payday loan firms operated by the Miami Tribe of Oklahoma and the Modoc Tribe of Oklahoma. The complaint alleges that the companies would make repeated small withdrawals from customers' accounts — while charging a fee each time. According to The Oklahoman, one customer was charged $675 in fees to pay off a $300 loan.

The FTC is seeking an injunction to stop the companies from operating while authorities pursue the case.

Miami Nation Chief Thomas Gamble did not return a message seeking comment, while a spokeswoman for the Modoc Tribe declined to comment.

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