Storefront lenders exploit loopholes by tweaking the terms of their loans, reclassifying themselves as other types of companies and lobbying aggressively for friendly legislation, according to a report this week by ProPublica. State efforts to regulate the loans have pushed many consumers online, where state laws have so far carried little weight.

The Internet allows payday lenders to reach people living in cities or states where their products are illegal. Many companies in this growing market have evaded state and federal consumer protections by operating from Indian reservations.

Tribal sovereignty puts them beyond the reach of U. regulators, they argue. Tribal lenders. Tribal lenders were outraged by New Yorks order to stop making loans there, saying it violates their constitutionally protected right to set and enforce their own regulations.

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