unlawfulcharges.comWhat Lendumo Is, and What Its Loans Cost
Lendumo is the trade name of Niswi, LLC, which describes itself on its own website as "a commercial enterprise and instrumentality of the Lac du Flambeau Band of Lake Superior Chippewa Indians." It makes small online installment loans, up to $2,500, to borrowers in most of the United States.
The website does not publish an interest rate. It says only that complete disclosure of APR, fees and payment terms is provided inside the loan agreement, and it describes the product plainly as an expensive form of borrowing.
Court filings put numbers to that. A federal class action pending in Illinois alleges that Lendumo loans carried APRs above 450%. In that case, one borrower's $1,300 loan was scheduled to be repaid at $5,954.40, of which $4,654.40 was interest. That is roughly three and a half dollars of interest for every dollar actually borrowed.
"Not the Laws of Your Resident State"
That phrase comes from Lendumo's own website. Its loans, the site says, are "governed by Tribal law, applicable federal law, and the terms and conditions of your loan agreement, not the laws of your resident state."
The rates depend on that sentence. Nearly every state caps what a consumer loan can cost. 36% a year is a common ceiling and many states set it lower. A lender held to those caps could not charge 450%, so the paperwork asserts that the borrower's home-state law simply does not reach the loan.
Courts have repeatedly declined to accept that assertion at face value. The question is not what the contract says about which law governs. It is who is actually making the loan, and whether a tribe's sovereign immunity can be stretched to cover non-tribal companies that put up the capital, run the underwriting, buy the advertising, and collect the payments.
Who Is Actually Behind the Loans
Lendumo is being litigated in federal court on precisely that question.
In Gonzalez v. Niswi, LLC (N.D. Ill., No. 3:24-cv-50038), borrowers allege that although Niswi, LLC and LDF Holdings, LLC present themselves as tribally owned, non-tribal lenders are using the tribe's sovereign immunity to evade state usury law. The complaint names LDF Holdings and the servicing company Soaren Management alongside Niswi. A second case, Taylor v. Niswi, LLC (S.D. Ind., No. 1:25-cv-00918), was filed in 2025.
Tribal-lending lawsuits tend to follow the same pattern. A tribal entity is the name on the loan agreement, while the money, the software, the marketing and the collections operation belong to outside companies that take the bulk of the revenue. Those outside companies are not tribes and do not hold sovereign immunity, and they are who these claims are brought against.
Lendumo's own site states that it does not lend to residents of Illinois or Indiana, the two states where these cases were filed.
Do You Still Owe the Loan?
Where a loan is made above a state's legal rate ceiling by a lender not licensed to make it, many states treat the loan as void, meaning no principal and no interest is collectible, and money already paid can be recovered. That remedy is stronger than it sounds. It does not merely remove the amount charged above the cap; it reaches the whole obligation.
Federal racketeering law can add a second layer. Collecting a debt at more than twice the enforceable rate may qualify as collection of unlawful debt, which carries triple damages and attorney's fees against the non-tribal companies operating the lending business.
Two practical points. You should not assume your loan is void without having it reviewed, and you should not simply stop paying on your own assumption. What a claim does is put that question in front of someone with the authority to answer it.
What You Could Recover, and What You'll Need
A claim can seek several things at once:
- Restitution of what was paid on a loan that was void when it was made
- Triple the amounts paid above the lawful rate under federal racketeering law, plus attorney's fees
- In many states, treble damages and fees under that state's unfair-and-deceptive-practices statute
Timing matters. The federal racketeering claim carries a four-year limitations period, so a loan taken out several years ago may still be within reach, and if you have made payments recently, the window is likely still open.
What proves the case is ordinary paperwork: the loan agreement showing the rate, your payment history, and bank statements showing what left your account. You do not need any of it in hand to sign up. We will work with you to gather what is needed, and records can be obtained from the lender and its servicer during the proceeding. You pay nothing unless we recover on your behalf.
The legal basis
Why this may be illegal
Lendumo is the trade name of Niswi, LLC, which presents itself as an arm of the Lac du Flambeau Band of Lake Superior Chippewa Indians and tells borrowers their loans are "governed by Tribal law... not the laws of your resident state." A federal class action in Illinois alleges Lendumo's loans carried APRs above 450% — in one borrower's case, a $1,300 loan scheduled to be repaid at $5,954.40, of which $4,654.40 was interest. Nearly every state caps consumer loan rates at or below 36%. Where a loan exceeds the state ceiling and the lender is not licensed to make it, the loan may be void, you may owe nothing further, and you may be able to recover what you have already paid — up to three times over.
The law
Federal racketeering law treats the collection of an unlawful debt — a loan charged at more than twice the rate the law allows — as racketeering itself, and it carries triple damages and attorney's fees against the non-tribal companies that fund, run and collect on the lending operation. State usury and lender-licensing laws make a loan above the state cap by an unlicensed lender void, so nothing further is collectible and the money already paid can be recovered. State unfair and deceptive trade practices laws add triple damages and attorney's fees. And the companies actually behind these loans are not tribes, so a tribe's legal immunity does not shield them.
Two federal cases are pending against Niswi, LLC d/b/a Lendumo and its affiliates: Gonzalez v. Niswi, LLC (N.D. Ill., No. 3:24-cv-50038), which names LDF Holdings, LLC and Soaren Management as co-defendants, and Taylor v. Niswi, LLC (S.D. Ind., No. 1:25-cv-00918).
What you could recover
Three separate laws can apply to a loan like this.
The federal racketeering statute allows you to recover three times what you paid above the lawful rate, plus attorney fees, reaching back four years. Your state's usury law treats a loan made above the legal cap, by a lender not licensed to make it, as void — which means the amounts you paid can be returned to you. And your state's unfair and deceptive trade practices law triples damages and allows attorney fees.
Under each of them the starting point is the same: the difference between what you actually paid and what the loan would have cost at the lawful rate.
How your claim would be handled
Claims like this are handled as individual arbitration cases — private proceedings, no courtroom.
What You Borrowed* vs. What the Loan Actually Costs*
| What You Borrowed* ($1,300 installment loan · Over 450% APR alleged — most state ceilings are 36% or lower) | $1300.00 |
| Interest and finance charges over the life of the loan | +$4654.40 |
| What the Loan Actually Costs* (A loan above your state's rate ceiling may be uncollectible — and you may be able to recover up to three times what you already paid) | $5954.40 |
Figures shown are illustrative examples, not records of an actual transaction; your amounts may differ.
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Check if you qualifyFrequently asked questions
Do I have to pay for this?
You don't pay anything unless we recover compensation on your behalf. Our legal team works on contingency — we only get paid if you do.
What if the lender claims it's a tribal loan I can't sue over?
That's exactly the defense these lenders use, and courts have repeatedly rejected it. The non-tribal companies funding and running these loans are not protected by tribal immunity.
Do I still owe the loan?
If your loan was made above your state's legal interest rate by an unlicensed lender, the loan may be void — meaning you may owe nothing further. We'll evaluate your specific loan.
Do I need my loan documents?
They help, but you can sign up without them. We'll work with you to gather loan agreements, statements, and payment records.
What is Maginnis Howard?
Maginnis Howard is a consumer protection and personal injury law firm serving clients nationwide. Learn more at www.carolinalaw.com.
What if I have other questions?
Contact us at unlawfulcharges@carolinalaw.com.
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