Otoe-Missouria Tribe v. New York State Dept. of Fin. Servs., No. 13-3769 (2d Cir. 2014)Annotate this Case
Plaintiffs, provider of short-term loans over the internet, sought a preliminary order enjoining DFS from interfering with the tribes' consumer lending business. New York's usury laws prohibit unlicensed lenders from lending money at an interest rate above 16 percent per year, and criminalized loans with interest rates higher than 25 percent per year. DFS received complaints from New York residents for loans from plaintiffs with interest rates as high as 912.49 percent. Plaintiffs argued that New York projected its regulations over the internet and onto reservations in violation of Native Americans' tribal sovereignty protected by the Indian Commerce Clause of the Constitution. The court affirmed the district court's denial of plaintiffs' motion for a preliminary injunction because the district court reasonably concluded that plaintiffs failed to establish that the challenged loan transactions occurred on Native American soil, a fact necessary to weaken New York State's regulatory authority over them.