A federal court has ruled that state regulators have the authority over online lenders that operate from Native American land.

The U.S. District Court for the Southern District of New York ruled Monday that the state can block payday lenders from making loans to state residents even when loans are originated from offices on tribal land. Judge Richard Sullivan denied a request for preliminary injunction filed by the Otoe-Missouria Tribe of Indians, arguing that the loans fall under the state's authority because they affect the state's residents.

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