On August 8, 2025, Kelly Guzzo, PLC filed a class action lawsuit against Boost Credit Line, a company that presents itself as a tribal lending entity owned and operated by the Mechoopda Indian Tribe of Chico Rancheria. The lawsuit challenges the legality of Boost Credit’s high-interest loans and seeks damages and declaratory relief against co-conspirators allegedly participating in this illegal lending scheme.
According to the complaint, the plaintiff applied for a loan from Boost Credit with an interest rate of 688%. The lawsuit alleges that this excessive rate violates state usury laws and the Racketeer Influenced and Corrupt Organizations Act (RICO). It further contends that Boost Credit operates as a front for a non-tribal payday lender attempting to avoid state lending restrictions by using tribal affiliations as a shield.
This tribal lending model has become a recurring tactic used by payday lenders. Typically, a non-tribal lender partners with a Native American tribe to form a nominal “tribal” business entity. While the lender’s materials claim tribal ownership, the non-tribal company often handles all key business operations—including marketing, underwriting, origination, financing, and collection.
However, state usury laws remain in effect regardless of tribal lending claims. For example, Virginia law generally prohibits loans with interest rates exceeding 12% per year, while North Carolina law caps interest at 8% per year.
For over a decade, Kelly Guzzo, PLC has represented consumers against predatory lending practices, including those exploiting the tribal lending loophole. Our firm has a strong record of protecting borrowers from illegal lending schemes and holding lenders accountable under state and federal law.
If you received a high-interest loan from Boost Credit, you may be entitled to relief. Contact our Consumer Protection team for a free consultation. There are no out-of-pocket costs, and our firm only recovers if we win your case.