Tribal loans interest rates $38M class action lawsuit settlement

Several tribal officials agreed to fund a settlement worth $39 million in order to resolve class action lawsuit claims they attempted to circumvent laws related to loans.

The financial lawsuit settlement benefits consumers who obtained a loan from Golden Valley, Silver Cloud or Majestic Lake at any time or those who obtained a loan from Mountain Summit before Feb. 1, 2021.

According to a lending class action lawsuit, a number of lending companies formed under tribal laws of the Habematolel Pomo of Upper Lake tribe used tribal laws to circumvent state laws on interest and lending safety. 

Plaintiffs in the case say they were charged interest rates of between 543% and 919% on payday loans. Although these high interest rates may be allowed under tribal laws, plaintiffs in the case say they weren’t properly informed their loans wouldn’t be governed by stricter state laws.

“Under this model, payday lenders originate their loan products through a company ‘owned’ by a Native American tribe and organized under its laws,” the class action lawsuit explains. 

“The tribal company serves as a conduit for the loans, facilitating a dubious and legally incorrect claim that the loans are subject to tribal law, not the protections created by state usury and licensing laws.”

The tribal officials haven’t admitted any wrongdoing but agreed to resolve these allegations with $39 million in settlements.

Under the terms of the tribal loans lawsuit settlement, class members may be eligible for a cash payment based on the amount they paid in principal and interest on eligible loans. Borrowers are not eligible for these payments if they meet any of the following criteria:

• Did not make any payments on their loans
• Lived in Arizona, Arkansas, Colorado, Connecticut, Idaho, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Ohio, South Dakota, Vermont, Virginia or Wisconsin and did not make payments above the loan’s principal balance
• Lived in Alabama, Alaska, California, Delaware, Florida, Georgia, Hawaii, Iowa, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, Washington D.C. and Wyoming and did not pay interest above their state’s legal limits
• Lived in states with no interest restrictions (Utah and Nevada)

Class members who fit payment criteria will not receive full reimbursement for their paid amounts but will be eligible for a share of the settlement proportional to what they paid. 

For example, a class member who paid $10,000 in interest and principal would be eligible for a larger share of the settlement than those who paid only $1,000 in interest and principal. 

Borrowers can check the settlement website to find out if they’ll receive money.

Even if they don’t qualify for monetary payments from the settlement, all class members are eligible for non-monetary settlement benefits. 

Class members in the financial lawsuit settlement can have their unpaid balances forgiven for all Golden Valley, Silver Cloud, Majestic Lake or Mountain Summit loans covered by the class definition. 

In addition, tribal officials will request that all negatively reported information regarding the covered loans be removed from class members’ credit reports.

The deadline for exclusion and objection is Sept. 6, 2022. 

The final approval hearing for the settlement is scheduled for Oct. 21, 2022.

No claim form is required to benefit from the tribal loans lawsuit settlement. Class members who do not exclude themselves will automatically receive payments.

Who’s Eligible

The settlement benefits consumers who obtained a loan from Golden Valley, Silver Cloud or Majestic Lake at any time or those who obtained a loan from Mountain Summit before Feb. 1, 2021.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Check to See if You’ll Receive a Payment

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion and Objection Deadline

09/06/2022

Case Name

Hengle, et al. v. Scott Asner, et al., Case No. 3:19-cv-250, in the U.S. District Court for the Eastern District of Virginia

Final Hearing

10/21/2022

Settlement Website

UpperLakeSettlement.com

Claims Administrator

Hengle Settlement
c/o Settlement Administrator
P.O. Box 23309
Jacksonville, FL 32241
800-626-2724

Class Counsel

Kristi C Kelly
Andrew J Guzzo
Casey Nash
J Patrick McNichol
KELLY GUZZO PLC

Leonard A Bennett
Kevin Dillon
Drew Sarrett
CONSUMER LITIGATION ASSOCIATES PC

Matthew Wessler
GUPTA WESSLER PLLC

Defense Counsel

Robert B Gilmore
STEIN MITCHELL BEATO & MISSNER LLP