Think Finance is not alleged to itself underwrite, fund, or originate any loans to Pennsylvania borrowers. The agreements that borrowers signed with each of the tribes reflect this reality.

The loan agreements are subject to tribal law, and tribal law only. In a separate motion, Rees says loan documents signed by Pennsylvania consumers provide that the transactions are subject to tribal law. This is not the first time regulators have taken on online payday lenders. New York has enforced its ban on payday lending by all but demanding that 117 banks stop processing payments between residents and 35 online payday lenders.

Schneiderman, the state's attorney general, also reached a 20 million settlement with Western Sky, an online payday lending company owned by a member of South Dakotas Cheyenne Patelco cu cash advance Sioux but backed by California-based Cash Call and another company, over allegations of collecting illegal interest.

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