How Payday Lenders Pull Off Crippling Rates

(CBS News)

Overland Park, Kansas - Americans struggling in this economy, advance of salary can be a lifeline. These advances - which is also known as payday loans - nearly $ 11 billion in loan last year, has become the fastest-growing online business.

Survey CBS News correspondent Armen Keteyian Chief, in partnership with the Center for Public Integrity, money as often found for this report, comes with a devastating rate.

Center for Public Integrity Report

Ramonzayasu is suffering from prostate cancer, was facing mounting costs.

"I had to pay the electricity bill or have turned off the fluorescent light," Zayas said. Check out also jackson payday advance .

So he and his wife got a $ 250 payday loan lenders online 500 FASTCASH. It is 476 percent annual interest rate available. Zayas, but he thought the loan was repaid, mess fees, high interest and push the final cost of $ 125 a month - $ 250 loan. As with many people, he could not keep up with skyrocketing. Check out also lenders with no telecheck .

"I borrowed $ 250, I thought I would have to pay me $ 325," Zayas said. "I actually paid $ 700, it went to the bank I think that what had been $ 1,100 had not put an end to this."

In such a case because, in the 17 states that prohibit payday lending effectively. See Also llc payday . Because Indian tribes are owned by the 500 FastCash, Ramonzayasu "Lenders are shielded from the law. Today, payday lenders partner of 30 American Indian tribes and the estimated line.

"You will belong to the tribe and, if you can avoid the local and state laws, in my opinion, loan sharking is apparently legal in this country," said Rick Brinkley.

Brinkley runs the Better Business Bureau of Eastern Oklahoma. He received 2,000 complaints, the person who is behind some of these actions but say it is not known.

"They do not have the signature of the returning characters from the payday loan company," Keteyian asked.

"They just say," Compliance Office, "" Brinkley replied.

"What is it you know?"

"It tells us that they do not want or know who they are."

Learn payday lenders in your state

CBS News, who was looking to profit from these companies. So we have to go to the address of three online payday lenders owned by the state of Oklahoma in Miami.

After all, payday lending activity in this tribe, we are in Overland Park, operated by a company that has been found in Kansas AMG Services

However, the owner of the company's employees would not say where. "I'm not at liberty to publish that information," the employee said. Check out also lis of uk payday lenders .

News / CBS Center for Public Integrity investigation, Attorney General of Colorado and West Virginia, found that lending to pursue them. They argue that the court documents, a key player Alan Scott Tucker. Tucker spent a year in federal prison in 1991 for fraudulent business loans. Check out also latest payday lenders .

Today, Tucker, 49-year-old is enjoying the high-octane lifestyle. He has a fleet of luxury cars race, $ 14 million corporate jet and fly. Aspen 800 million dollars homes are listed in his wife's name, property tax, we discovered, was paid by the service of AMG.

Tucker, declined our requests for an interview, we caught up with him in the race in California. He did not answer our questions about his connection to the AMG service. See Also lenders for payday advances .

Statement from Scott Tucker

Letter from Chief Tom Gamble's family in Miami

Later, Miami Tribe sent us letters Tucker, a service of AMG "employee" and says the agreement to be bound by the explanation of the tribal business. The tribe, in which all complaints are processed, the federal and tribal law, said in a statement following the "proper, without any harassment."

Meanwhile, his wife and Ramonzayasu closes his bank account, saying they had continued to be harassed for several months. See Also internet payday lenders .

"They want the poor people can be like me," Zayas said.

Lenders, you can dodge the law of the state is not immune from federal law. The Federal Trade Commission two weeks ago, took the first legal action against online payday lenders tied to other Indian tribes.