Class Action Alleges Little Lake Lending Operates Illegal ‘Rent-A-Tribe’ Loan Scheme

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A proposed class action claims the operator of online lender LittleLakeLending.com is part of an illegal “rent-a-tribe” scheme whereby Illinois residents are issued loans with excessive interest rates.

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The 20-page lawsuit says that although those behind Little Lake Lending claim the business is owned by the federally recognized Big Valley Band of Pomo Indians of the Big Valley Rancheria in California, the non-tribal lenders are, in fact, “fraudulently hiding behind” the tribe’s sovereign immunity in an attempt to evade state interest rate caps.

Alongside Little Lake Lending—operated by Layma LLC, also known as Layama LLC—the suit names as co-defendant Ben G. Ray, III, the company’s manager and chief executive officer.

Through LittleLakeLending.com, the defendants have made unlawful loans to consumers at “triple-digit” annual percentage rates, the case alleges.

Illinois law stipulates that loans made by unlicensed entities at more than nine percent interest are illegal under the state’s Interest Act and therefore void, the filing explains. What’s more, a loan issued at over 20 percent interest is considered a felony under state law, the lawsuit relays.

According to the suit, the Illinois Department of Financial and Professional Regulation has repeatedly taken legal action against unlicensed out-of-state lenders such as Little Lake Lending to combat illegal online lending to Illinois residents.

The plaintiffs, two Illinois citizens, each took out installment loans from LittleLakeLending.com in the past few years with annual percentage rates far in excess of the legal interest rate, the case says. Per the complaint, one plaintiff took out a $1,500 loan at an interest rate of 650 percent, and the other took out a $2,500 loan at a 300 percent annual percentage rate.

As the filing tells it, numerous online lenders have purportedly operated out of the Lakeport, California addresses used by the defendants. Per the suit, in addition to Little Lake Lending, these lenders have included:

• Freedom Cash Lenders;
• Tremont Lending;
• CreditCube;
• Net Cash Lender;
• Rushmore Credit;
• Big Valley Financial;
• Big Eye Lending;
• Solid Cash Solutions;
• Kali LLC, which does business as Condor Credit;
• Liberty Cash Lenders;
• Cashland Loans; and
• Green Arrow Solutions.

The lawsuit looks to represent:

“(a) [All] individuals with Illinois addresses (b) to whom a loan was made in the name of ‘Little Lake Lending’ at more than 9% interest (c) which loan has not been paid in full;”

“(a) [All] individuals with Illinois addresses (b) to whom a loan was made in the name of ‘Little Lake Lending’ at more than 9% interest (c) which is outstanding or was paid in full on or after a date two years prior to the filing of this action;”

“(a) [All] individuals with Illinois addresses (b) to whom a loan was made in the name of ‘Little Lake Lending’ at more than 36% interest (c) on or after March 23, 2021;” and

“(a) [All] individuals with Illinois addresses (b) to whom a loan was made in the name of ‘Little Lake Lending’ at more than 18% interest (c) which loan was made on or after a date four years prior to the filing of this action.”

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