Quick Answer: A new federal RICO lawsuit filed February 5, 2026, alleges that 605 Lending (operated by FSST Management Services) is running a “rent-a-tribe” payday loan scheme, charging Illinois consumers up to 700% APR while hiding behind the Flandreau Santee Sioux Tribe’s sovereign immunity to avoid state lending laws.
A new class action accuses a payday lender of using a Native American tribe as a legal shield to charge consumers interest rates that would be illegal in every state in the country.
The case, Lessen v. FSST Management Services, LLC d/b/a 605 Lending (Case No. 3:26-cv-03044), was filed in the U.S. District Court for the Central District of Illinois on February 5, 2026. The complaint names seven defendants and makes claims under federal RICO law — the same statute used to prosecute organized crime.
Each weekday I send one short email: one money story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.
In the latest issue (Oct 9): Does Financial Literacy Make Financial Sense?
Free. I sell nothing. Unsubscribe any time.
What Is a “Rent-a-Tribe” Lending Scheme?
The term “rent-a-tribe” describes an arrangement where non-tribal lenders pay a Native American tribe a fraction of their revenues in exchange for the use of the tribe’s name and its sovereign immunity from state regulation. The idea is simple: if a payday lender operates “through” a tribe, it can claim tribal immunity to dodge state usury laws that cap interest rates.
In the case of 605 Lending, the lawsuit alleges that the Flandreau Santee Sioux Tribe’s involvement is “merely superficial” — that all substantive aspects of the lending operation, including financing, management, and risk-bearing, are controlled by non-tribal members. The tribe’s only real contribution, the complaint alleges, is providing a “cloak of sovereign immunity” for illegal lending.
700% APR: According to the complaint, 605 Lending has charged Illinois consumers more than 700% interest on payday loans. Illinois law limits interest rates under the Illinois Predatory Loan Prevention Act — yet 605 Lending allegedly operated without proper state licensing.
Who Is Named in the Lawsuit
The complaint filed by plaintiff Rachel Lessen names seven defendants:
- FSST Management Services, LLC d/b/a 605 Lending — the lending entity
- Steve Christensen — named individual defendant
- Dustin Dernier — named individual defendant
- Debt Direct Portfolio Management LLC — alleged debt portfolio entity
- Infinity Enterprise Lending Systems — alleged lending infrastructure provider
- Lead Bank — banking partner
- United Mediation Partners LLC — alleged debt collection entity
The case is assigned to Judge Colleen R. Lawless with Magistrate Douglas J. Quivey. Plaintiff is represented by attorneys Daniel A. Edelman, Dulijaza Clark, and Alexandra Huzyk.
The Legal Claims
This isn’t a typical consumer complaint. The lawsuit brings claims under some of the strongest federal and state consumer protection statutes available:
- Federal RICO (18 U.S.C. § 1964) — Racketeering charges alleging an organized criminal enterprise
- Fair Debt Collection Practices Act (FDCPA) — For collection attempts on loans the complaint alleges are void and unenforceable
- Illinois Consumer Fraud and Deceptive Business Practices Act
- Illinois Interest Act — State usury law violations
- Illinois Predatory Loan Prevention Act
Why RICO Matters: RICO (Racketeer Influenced and Corrupt Organizations Act) carries the possibility of treble damages — three times the actual damages. It’s the same law originally designed to combat organized crime. When a court allows RICO claims against a lender, it’s treating the alleged conduct as something closer to an organized criminal enterprise than a regulatory violation.
Not the First Time
605 Lending has faced similar allegations before. A previous class action (Harris v. FSST Management Services, Case No. 1:22-cv-01063) was filed in the Northern District of Illinois in 2022 making nearly identical claims. The new Lessen case names additional defendants and was filed in a different federal district.
The “rent-a-tribe” model itself has been under increasing legal scrutiny. Courts across the country have been rejecting tribal immunity claims when the tribe’s involvement in lending operations is shown to be minimal.
What This Means for Borrowers
If you’ve taken a loan from 605 Lending or any tribal-affiliated online lender with triple-digit interest rates:
- The loan may be unenforceable — if the lender isn’t properly licensed in your state, courts may declare the loan void
- Collection attempts on void loans may violate federal law — the FDCPA prohibits collecting debts that aren’t owed
- You may be part of the class — the lawsuit seeks to represent all similarly situated Illinois consumers
- Don’t panic — a pending lawsuit doesn’t mean anything has been proven. These are allegations that will be tested in court
Before You Sign Anything: If you’re considering any online lender — especially one claiming tribal affiliation — run their contract through the Contract Decoder first. It’s free — and it’s your last chance to spot red flags before you commit.
If a lender needs to hide behind someone else’s legal shield to operate, that tells you everything you need to know about whether they’re operating legally.— Steve Rhode
Struggling With Debt? If payday loan debt is part of your financial picture, take the free Find Your Path quiz. There are more options than most people realize — and some of them will surprise you.
Case Update — February 17, 2026
Amended complaint filed. On February 17, 2026, plaintiff Rachel Lessen filed an amended complaint against the same defendants.
Case stayed. The same day, Magistrate Judge Douglas J. Quivey granted defendants’ unopposed motion to stay proceedings. The case is paused until the Seventh Circuit issues its decision in Harris v. W6LS, Inc., No. 24-2056 — a related rent-a-tribe case involving the same FSST Management Services defendants that was argued before the Seventh Circuit on February 12, 2026. Once the Seventh Circuit rules, the tribal defendants in the Lessen case have 30 days to respond.
Why this matters: The 7th Circuit’s Harris ruling will determine whether tribal sovereign immunity can shield 605 Lending’s operators from state lending laws — directly controlling the outcome of the Lessen case.
Key Takeaways
- A new RICO class action alleges 605 Lending runs an illegal “rent-a-tribe” payday loan scheme charging up to 700% APR
- The lawsuit claims the Flandreau Santee Sioux Tribe’s involvement is superficial — non-tribal members control the operation
- Seven defendants are named, including individuals, a bank, and collection entities
- RICO claims carry the possibility of treble (3x) damages
- This is the second federal lawsuit against 605 Lending for similar alleged conduct
- If you’ve borrowed from 605 Lending, the loan may be unenforceable under state law
(Source: CourtListener — Lessen v. FSST Management Services)
FAQ
What is a rent-a-tribe payday lending scheme?
A “rent-a-tribe” scheme is when a non-tribal lending operation pays a Native American tribe for the use of its name and sovereign immunity to avoid state lending regulations. The lender claims to be a tribal enterprise to dodge usury laws, while the tribe’s actual involvement in operations is minimal. Courts have increasingly rejected these immunity claims.
Is 605 Lending a legitimate lender?
605 Lending (operated by FSST Management Services) claims to be a tribal lending entity of the Flandreau Santee Sioux Tribe. However, two separate federal lawsuits allege it operates an illegal lending scheme with interest rates exceeding 700% APR, in violation of state usury laws. The allegations have not been proven in court.
What does a RICO lawsuit mean for a payday lender?
RICO (Racketeer Influenced and Corrupt Organizations Act) claims treat the alleged conduct as an organized criminal enterprise rather than a simple regulatory violation. If proven, RICO allows for treble damages (three times actual damages), making it one of the most powerful tools available to consumers in lending fraud cases.
Can I still be sued for a payday loan that’s illegal in my state?
A debt collector can attempt to collect, but if the underlying loan violates your state’s usury laws and the lender wasn’t properly licensed, courts may find the loan void and unenforceable. Collection attempts on void debts may also violate the Fair Debt Collection Practices Act (FDCPA).
What should I do if I have a loan from 605 Lending?
Don’t panic — a pending lawsuit doesn’t mean anything has been proven yet. Keep records of all loan documents, payment history, and communications. If you’re contacted by a debt collector about the loan, know your FDCPA rights. Consider consulting a consumer protection attorney, especially if you’re an Illinois resident who may be part of the class.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
