Updated: July 25, 2017
Originally Posted: January 5, 2017
Alert Number: CA047869_7/25/17(7/18)
The Washington State Department of Financial Institutions (DFI) has received a complaint from a Washington State consumer against Dakota Lending d/b/a MyLoanSite.com (Dakota Lending). Several consumers have reported that Dakota Lending has not been honoring Automatic Clearing House (ACH) agreements and requests to discontinue ACH automatic withdrawals.
It appears that Dakota Lending may be operating as an online tribal lender. Dakota Lending is an instrumentality of the Crow Creek Sioux Tribe, and claims to be a Native American owned business operating within the interior boundaries of the Crow Creek Sioux Reservation located in South Dakota.
Dakota Lending is not licensed by the DFI and is not registered to conduct business in Washington State by the Department of Licensing, the Department of Revenue, or the Secretary of State.
Dakota Lending operates its website at [myloansite.com], and lists its contact information as:
PO Box 188
Fort Thompson, SD 57339
DFI warns Washington consumers that before doing business with a financial service provider the consumer should:
- Make sure that the entity is licensed. Consumers can use the “Verify a License” feature on DFI’s website at www.dfi.wa.gov to check whether a payday or consumer loan company is licensed to conduct business in the state of Washington.
- Not provide any personal information, such as social security number or bank account number or access if the company is not licensed or authorized to conduct business.
Important Information for Washington State Consumers
Washington State residents are informed that Washington State law provides in RCW 31.45.105(1)(d) and (3) that a “small loan” made by an unlicensed entity to a person physically located in Washington State is uncollectible and unenforceable in Washington State. A “small loan” is defined in RCW 31.45.073 and is a loan that does not exceed $700.
Washington State residents with loans exceeding $700 are informed that Washington State law provides in RCW 31.04.035 that fees or interest charged in the making of a nonresidential loan by an unlicensed lender must be refunded to the borrower.
Report Unlicensed Lending Activity or Fraud
Washington State residents only: If you suspect unlicensed activity by a payday lender or consumer loan company, please contact the Department at 1*877*RING*DFI (746*4334), or online at www.dfi.wa.gov. Even if your activity involves a loan over the internet, a license may still be required.