We’ve all been in a desperate pinch for cash at one point in our lives. Among the many options available, the fast cash, online payday installment loan should be your last resort. It’s great you get your money into your account within hours or the next business day – but you could end up paying a tremendous cost, both literally and figuratively.
But, if you do need to go down this road, make sure to research your lender options before you make a choice.
What is Sky Trail Cash?
Sly Trail Cash is a Native American Indian fast cash online lender that falls under the tribal laws of Lac Du Flambeau Band of the Lake Superior Chippewa American Indians in Wisconsin. These loans are not regulated by the federal government but by the tribal laws of this specific tribe.
Their website mentions shoddy credit is not a problem, instant online application, and a five-minute response time for customer service to call. They also offer a same-day funding option until 2 p.m. Central Time, or next business day funds delivery.
Is Sky Trail Cash Licensed?
These types of tribal lenders are not licensed in the states they operate in. They have their own autonomous set of laws. They are only forced to follow the rules set forth by their specific tribe, in this case, the Lac Du Flambeau Band of Lake Superior Chippewa American Indians in Wisconsin.
Both state and federal regulators regulate typical lenders we are familiar with. Tribal lenders like Sky Trail Cash have immunity and are not subject to the regular lending rules since these types of lenders are located on tribal land. It is like having diplomatic immunity.
Payday loan interest rates vary greatly but the annual percentage rate (APR) can run up to 590%. Sky Trail’s website showed two examples of loans with an interest rate of almost 780%.
Traditional payday loans are considered so predatory that they are banned in many states. Tribal loans are protected by tribal sovereignty, so state laws do not apply.
What is a Tribal Loan?
Tribal lenders are short-term, small-dollar, payday loans owned and operated by a recognized Native American tribal government. They are payday lenders based on tribal land, with loans from companies owned by Native American tribes.
The big differentiator between tribal loans and traditional payday lenders is that conventional lenders are mandated to follow the federal payday lending guidelines to ensure proper lending practices; tribal lenders are not.
What is Tribal Immunity?
Native American tribes have their land and laws, and they have sovereign immunity from federal and state laws and protection from outside litigation. It’s like having a separate country within a country that operates autonomously. They can do as they please. Tribal loans can charge any interest rate they wish that far exceeds state limits, provide loans with balances that are higher than state minimums, and even break the terms of their loan agreements with no federal ramifications.
While the Supreme Court and the Consumer Financial Protection Bureau (CFPB) attempt to crack down on tribal lenders, the process has been slow. Tribal lenders are holding fast to their position that they are not subject to any laws but their own.
In the meantime, lenders like Sky Trail Cash continue to offer loans that violate state laws and ruin the financial well-being of many desperate borrowers through extreme predatory lending.
Here’s What’s to Expect When Taking Out a Loan from Sky Trail Cash
- What’s the APR range? There is no interest rate cap for tribal law, so the sky’s the limit, just like the company name. They list two APR scenarios on their site that cite a % interest rate and another %.