United Portfolio Management illegally collected on tribal loans with interest rates above 700%, a new class action claims.

Allison Sharits filed a class action lawsuit against Pacific Capital Exchange LLC, d/b/a United Portfolio Management, and its owner Jason G. Chebat on Oct. 19, 2026, in the U.S. District Court for the Northern District of Illinois.

The complaint alleges the debt buyer bought and collected on online loans that carried interest rates above 700% and therefore void under Illinois law.

The alleged tribal lending scheme

Sharits claims she took out a $600 loan from online lender 605 Lending in March 2024 at an annual interest rate of 777.36%. Had she made every scheduled payment, she would have paid nearly $3,000, the lawsuit says.

However, Illinois' Predatory Loan Prevention Act limits consumer loans to 36% interest a year and voids any loan above that rate, which means no one may collect on it, the proposed class action contends.

In addition, 605 Lending describes itself as tribally owned through a company that belongs to the Flandreau Santee Sioux Tribe of South Dakota. The tribe's ownership is "purely illusory," the complaint contends. It alleges outside operators oversee the lender and keep most of the profits while using the tribe's legal immunity to avoid state interest rate caps.

How Pacific Capital got involved

In January 2025, Pacific Capital bought Sharits's unpaid balance and hired debt collector Forest Hill Account Management Inc. to collect it, the filing says. Following a text from Forest Hill about the new owner, the collector's website allegedly asked for $752.10 then dropped the demand to a $451.26 settlement once Sharits said she could not pay the full amount.

Sharits says she paid the settlement in installments through March 2025. Counting her earlier payments to 605 Lending, she paid at least $741.31 on the loan. To set up the payment plan, the complaint asserts, she had to sign a form giving up her right to dispute the charges.

The legal claims

The lawsuit brings six claims:


  • Racketeer Influenced and Corrupt Organizations Act, under which two claims allege Pacific Capital Exchange took part in and conspired to run an enterprise that collected unlawful debt

  • Illinois Predatory Loan Prevention Act and Consumer Fraud and Deceptive Business Practices Act, which bar collecting on loans above the 36% cap

  • Illinois Payday Loan Reform Act, which bars unfair or deceptive practices in collecting payday loans

  • Unjust enrichment, which seeks the money the defendants collected unfairly

  • Civil conspiracy, which covers agreements with others to collect illegal debt

Sharits seeks compensation for class members, triple damages under the federal racketeering law, interest and an order stopping the conduct.

What the lawsuit means for borrowers

The proposed class covers anyone in the United States who had a loan from a lender claiming tribal ties that United Portfolio Management later bought or collected on with a separate group for Illinois residents.

There is no settlement, no claims process and no money available at this time.