500% Interest Shock: State Penalizes Debt Collection Firm for Exploiting Colorado Native Americans

After settling with the Colorado Attorney General’s Office for improper debt collection targeting Colorado Native Americans, Kansas-based TrueAccord has been hit with criticism. TrueAccord will compensate impacted individuals half a million dollars, highlighting exploitative lending and debt collection.

500% Interest Shock: State Penalizes Debt Collection Firm for Exploiting Colorado Native Americans (Photo: Google)

Colorado Attorney General’s Commitment to Consumer Protection

The state government found that TrueAccord contacted 29,000 tribal loan defaulters between 2017 and 2022. These loans, ostensibly under tribe law rather than Colorado law, had steep interest rates, some reaching 900% APR, considerably surpassing the state’s 12% annual cap.

Colorado Attorney General Phil Weiser stressed the necessity of safeguarding customers from such unethical activities regardless of loan origin. He stressed the state’s commitment to holding consumer protection violators responsible to guarantee justice for victims and avoid future abuses.

Along with the fine, TrueAccord was barred from collecting debts with interest rates beyond statutory restrictions. The corporation has to give the state a list of impacted customers within a certain deadline. TrueAccord’s settlement monies will compensate customers, and promote consumer and creditor education, and law enforcement.

TrueAccord stated they had followed the agreement but denied wrongdoing. They said they want to improve debt-collecting consumer experiences.

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The case shows the complexity of Colorado Native American lending and the need for jurisdiction and regulatory clarity. It also emphasizes the need to safeguard vulnerable people from fraudulent financial practices, especially in metropolitan Native American communities like Colorado’s Front Range.

With just two Native American reservations in the state, the Ute Mountain and Southern Ute tribes, such behaviors affect indigenous populations greatly. The settlement highlights Colorado Native Americans’ financial system issues and the need for strong consumer safeguards to defend their rights.

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