Kelly Guzzo, PLC has filed a class action lawsuit involving loans originated by Layma d/b/a Little Lake Lending, a company that claims to be a tribal lending entity owned and operated by the Big Valley Band of Pomo Indians. The lawsuit challenges the legality of Little Lake Lending’s extreme interest rate practices and seeks damages and declaratory relief against entities allegedly involved in the scheme.
According to the complaint, multiple plaintiffs obtained loans from Little Lake Lending carrying interest rates as high as 795%. The lawsuit alleges that these rates violate state usury laws and constitute unlawful conduct under the Racketeer Influenced and Corrupt Organizations Act (RICO). Plaintiffs further allege that Little Lake Lending operates as a front for a non-tribal payday lender seeking to use tribal affiliation to evade state consumer protection laws.
Little Lake Lending is not alone in allegedly relying on the tribal lending model to justify high-interest lending. Under this arrangement, a payday lender partners with a Native American tribe to establish a lending entity that appears tribal in name only.
Although loan agreements and marketing materials often claim that the tribe owns and controls the business, the complaint alleges that non-tribal entities frequently manage core operations, including:
- Loan marketing and customer acquisition
- Underwriting and approval decisions
- Funding and loan origination
- Servicing and collections
This structure is designed to create a tribal veneer while allowing non-tribal lenders to continue issuing predatory lending products.
State usury laws continue to protect consumers even when lenders claim tribal status. For example, Maryland law generally caps interest rates at 33% per year, while North Carolina law prohibits interest rates above 8% annually.
For more than a decade, Kelly Guzzo, PLC has represented consumers harmed by illegal high-interest lending practices, including those involving alleged misuse of tribal lending structures. If you obtained a high-interest loan from Layma d/b/a Little Lake Lending, our firm can review your loan agreement, assess potential claims, and explain your rights under state and federal law.
There are no upfront costs for these services, and our firm only recovers if compensation is obtained on your behalf. Please contact Kelly Guzzo, PLC if you believe you were subjected to an unlawful high-interest loan.