These lenders claim that their affiliation with sovereign tribes exempts them from state interest rate caps, leading borrowers into high-cost loans with little regulatory recourse. A March 2026 report by the Consumer Financial Protection Bureau (CFPB) showed a 240% surge in consumer complaints about unfamiliar debts in 2025. Currently, most U.S. states cap annual interest rates for small consumer loans between 24% and 36%, but these "tribal" online installment loans typically carry annual rates ranging from 350% to 750%, averaging around 400%.