In a statement to HuffPost, Silver Cloud said it was a legal, licensed and regulated entity that follows all federal laws. The lender operates under sovereign tribal law, it said, adding that Native American sovereignty predates the founding of the United States, is enshrined in the United States Constitution, and is further codified through federal statutes and hundreds of years of judicial precedent.
Some consumer attorneys have argued that even lenders based on tribal lands cannot flout state law. The legality of the issue still appears unsettled, with legal battles currently being waged over this very question in several states. Regulators in Connecticut on Tuesday fined the head of Oklahomas Payday loans online banking tribe, John Shotton, and two payday loan companies the tribe owns a total of 1. 5 million for making payday loans to Connecticut residents, according to Bloomberg News.
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