NAFSA (Native American Financial Services Association) is suing New York Department of Financial Services (DFS) and Administrator Benjamin Lawsky in Federal court.
The complaint argues that tribes will suffer irreparable injury absent injunctive relief, as Defendant Lawsky’s intimidation tactics against banks and third-party processors have already led to significant harm to tribes’ business relationships.
New York is avoiding the situation by claiming that they are not going after the tribes. Rather, that they’re going after fraud in the ACH system and it’s processors. It’s pretty much a Mexican standoff at this point between Benjamin Lawsky, Online Lenders and the FDIC.
