Kelly Guzzo, PLC has filed dozens of class action lawsuits against tribal lending entities offering high-interest loans to consumers. Over the past several years, our efforts have resulted in the return of more than $100 million to borrowers and the cancellation of more than $2 billion in unlawful debt.
We are currently investigating a new case against Loan Spot d/b/a Blue Mountain Loans, which presents itself as a lending business owned and operated by the Kashia Band of Pomo Indians of the Stewarts Point Rancheria. Available information indicates that Blue Mountain Loans has been issuing consumer loans with interest rates exceeding 500%, which would violate state usury laws nationwide.
Many payday lenders, including Loan Spot d/b/a Blue Mountain Loans, reportedly use the tribal lending model to attempt to shield their businesses from state lending regulations. Under this structure, a payday lender partners with a Native American tribe to create a nominal tribal business entity that appears to be the originating lender. In reality, the non-tribal lender frequently controls key aspects of the operation, including marketing, underwriting, origination, funding, servicing, and collections.
State lending laws apply even when loans are issued through tribal lenders. For example, Virginia law generally prohibits interest rates above 12% per year, while California law caps interest rates at 10% per year, absent specific exceptions.
For more than a decade, Kelly Guzzo, PLC has represented consumers harmed by predatory high-interest lending schemes, including those involving alleged misuse of the tribal lending model. If you obtained a high-interest loan from Loan Spot / Blue Mountain Loans, our firm can review your contract, evaluate potential claims, and explain your rights under state and federal law.
There is no out-of-pocket cost, and our firm only recovers if we obtain compensation for you. Please contact us if you received a high-interest loan and believe your rights may have been violated.