High-Interest Loans Affecting Credit

Question: Can a tribal online loan affect your credit score? And if so, can you easily dispute it if you don’t live on tribal land?

Answer: In Illinois, tribal loans are illegal and unenforceable if the lender does not have a lending license, which none do. I am not aware of any such lenders reporting to conventional credit bureaus. If they did, I think there would be serious issues with a credit bureau accepting negative reports on such loans, as you have a legal right not to repay them. I do suggest that people who have obtained such loans refuse to repay them in writing, stating that you are refusing to repay because they are illegal. If you do find such a loan on your credit report, call us, as there is a likely violation of the Fair Credit Reporting Act.

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