A while back I saw a TV ad by a company offering easy credit loans of up to $10,000. The fine print mentioned an outrageous interest rate, and I was curious how they could get away with it.

It turns out the company is "a Native American business operating within the exterior boundaries of the Cheyenne River Sioux Reservation, a sovereign nation located within the United States of America," which presumably means they are exempt from state usury laws.

You thought predatory payday lenders were bad. Check this out. An unsecured $500 loan costs you a $350 origination fee (added to the loan amount) and carries an APR of 342.86%, with 12 monthly payments of $150.72 totaling $1808.64.

A $10,000 loan is a somewhat better deal. It only requires a $75 origination fee and carries a much lower APR of only 89.68%. But, you will make 84 monthly payments of $743.49 totaling $62,453.16.

I heard an ad on talk radio the other day for a similar company. The ad said something like "we know it costs a little more to borrow from us, but it's fast and easy."

Who falls for this? The people who can least afford it, would be my guess.

It's apparently so lucrative that outside payday lenders are partnering with tribal interests to operate the companies. And it's drawing scrutiny from regulators.