THE BLOG

21
Jan

Payday Loans:California Upholds Doctrine of Tribal Sovereign Immunity

California Court of Appeals:

Applying the arm-of-the-tribe analysis as we directed in Ameriloan v. Superior Court (2008) 169 Cal.App.4th 81 (Ameriloan), the trial court dismissed for lack of subject matter jurisdiction this action by the Commissioner of the California Department of Corporations against five “payday loan” businesses owned by Miami Nation Enterprises (MNE), the economic development authority of the Miami Tribe of Oklahoma, a federally recognized Indian tribe, and SFS, Inc., a corporation wholly owned by the Santee Sioux Nation, also a federally recognized Indian tribe. Because the two tribal entities and their cash-advance and short-term-loan businesses are sufficiently related to their respective Indian tribes to be protected from this state enforcement action under the doctrine of tribal sovereign immunity, we affirm.

(NEED A TRIBE ACH PROVIDER? We have access. Request a contact. Inquiries held in STRICTEST confidence.)

In the end, tribal immunity does not depend on our evaluation of the respectability or ethics of the business in which a tribe or tribal entity elects to engage. Absent an extraordinary set of circumstances not present here, a tribal entity functions as an arm of the tribe if it has been formed by tribal resolution and according to tribal law, for the stated purpose of tribal economic development and with the clearly expressed intent by the sovereign tribe to convey its immunity to that entity, and has a governing structure both appointed by and ultimately overseen by the tribe. Such a tribal entity is immune from suit absent express waiver or congressional authorization. Neither third-party management of day-to-day operations nor retention of only a minimal percentage of the profits from the enterprise (however that may be defined) justifies judicial negation of that inherent element of tribal sovereignty.

DISPOSITION
The judgment is affirmed. MNE and SFS are to recover their costs on appeal.
PERLUSS, P. J.
We concur:
WOODS, J.
ZELON, J.

Read the Decision in it’s entirety here: Calif-Tribe-Doctrine-Upheld

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20
Jan

6 Beginner Steps to Start a Car Title Loan Business

how start car title loan businessBy Trihouse: Serious money is being made by entrepreneurs in the car title loan industry. Here’s 6 basic steps to start your journey:

  • Look around. Do you “see” car title loan businesses in your city? Yes? Then they’re legal. Get off your butt and GET A CAR TITLE LOAN. It’s the first step in your research. What? You don’t have the title to your vehicle? Get a friend, a family member, a shill…
  • Run an ad on Craigs List. “Manager for a new car title loan business wanted, experienced only.” Meet with all the applicants that sound promising at your local Starbucks. Ask them how they run the business for their employer. Be sure to pay them for their time – we typically pay $100 to $200 in cash. After all, it’s bad karma to waste their time. Explain to them that you are in the research mode…
  • While in your competition’s location, note the licensing and consumer complaint posters on the walls. Typically, there will be a toll free number to the regulatory agencies for your state. Call them. Talk to them about their requirements for obtaining a license.
  • Contact FISCA, CFSA and Google your state association.
  • Consider your life-style and capital available. Access your risk tolerance.
  • If, after following these rudimentary steps, it makes sense for you to proceed, put your business plan together and continue your research.

Granted, there’s a LOT more work to do but this isn’t rocket science. And don’t freak if you have competition. Profitable industries attract “players” like bees to honey.

Finally, be aware there is help for those of you already in the car title loan industry. [Shameless plug!] Check out Miro’s “Powerhouse Car Title Course.”

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19
Jan

Car Title Loan profits

Car-Title-Infographic-Large-Archetype-1200x CLICK ON THE GRAPHIC to ENLARGE IMAGE. How to Start a Car Title Loan Business: Learn how…

Learn how to open a payday loan business or improve your operations: PaydayLoanUniversity.com

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17
Jan

Car Title Loan Advertising Idea

Blond-How-Start-Car-Title-Loan-Business-3

  • Big blond with big boobs will work for air.
  • Never sick
  • Never requests a raise
  • No breaks
  • Never says “No”
  • Can always teach a few new tricks about car title loan profits

More ideas like this? Visit PaydayLoanUniversity.com

See: https://paydayloanindustryblog.com/payday-loan-marketing-idea/ 

Learn how to open a payday loan business or improve your operations: PaydayLoanUniversity.com

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15
Jan

Payday Loan ACH Processor

Payday Loan ACH ProcessorBy: Jer Trihouse. The payday loan industry continues to experience attacks on their ACH processing ability. At first glance, those of us who are dependent on the automated clearing house to service our borrowers shriek with acrimony at our governments intrusion into our business. I did as well. However, after I read the full text of the Department of Justice complaint and the settlement Four Oaks FINCORP agreed to, I must wonder what these guys were thinking! Obviously, only the parties involved know the details. The Fed’s have the deepest pockets! Litigating these allegations may have been suicide. Suffice it to say, when your lending model is dependent on “getting in bed” with other “players,” you are at risk. 

[Need a new ACH processor? Go here: ACH Processors ]

Some highlights:

    • Since the inception of Four Oaks Bank’s relationship with TPPP-TX, Four Oaks Bank has permitted TPPP-TX to originate more than 9.8 million ACH debits on behalf of TPPP-TX’s merchants. In dollar value, Four Oaks Bank has permitted TPPP-TX to process more than $2.4 billion in ACH network transactions for its merchants. In return for access to the ACH network, TPPP-TX has paid Four Oaks Bank more than $850,000 in gross fees.
    • As of today, approximately 97 percent of TPPP-TX’s merchants for which Four Oaks Bank permits debits to consumers’ accounts are Internet payday lenders. Annualized interest rates for Internet payday loans frequently range from 400 percent to 1,800 percent or more – far in excess of most states’ usury laws.
    • Four Oaks Bank also has permitted TPPP-TX to originate ACH debit transactions on behalf of other merchant-clients engaged in allegedly illegal activity, including alleged Internet gambling entities and an alleged Ponzi fraud scheme.
    • TPPP-TX’s Internet payday lender merchants operate through a series of websites. The websites are the only place where the lenders and borrowers “meet” to agree to loan terms. On these websites and in loan documents, TPPP-TX’s Internet payday lenders purport to state the total payment necessary for borrowers to satisfy a loan (which is the sum of the principal borrowed plus a stated finance charge) and the term of the loan. TPPP-TX’s fraudulent Internet payday lending merchant-clients affirmatively lead their respective borrowers to understand that their loans will be repaid by a single debit from their bank accounts on a date certain. Borrowers expect that, with that one debit on that specific date, the loan will be paid off and their obligation to the lender will terminate.  
    • Many of TPPP-TX’s Internet payday lenders’ actual practices, however, are not consistent with the expectations the lenders create for the borrowers. The lenders affirmatively mislead the borrowers by hiding in small print and in confusing language steps required for borrowers to avoid a loan rollover trap. Contrary to the expectations created by these lenders, the relevant TPPP-TX merchant-clients do not deduct the full amount owed (principal and interest and fees) on the loan due date so that the loan is fully satisfied and all obligations to the Internet payday lender end. Instead, these lenders manipulate repayment withdrawals for the purpose of extending the loans and racking up additional, unexpected finance charges against the borrowers.
    • In some cases, TPPP-TX’s Internet payday lenders unilaterally and without notice to borrowers – and in direct contradiction to the reasonable expectations of the borrowers based upon their Internet communications – unilaterally manipulate ACH debits against borrowers’ accounts to achieve greater profits at the expense of borrowers.
    • The design, intent, and effect of these fraudulent Internet payday lenders’ conduct creates a false pretext to withdraw money from borrowers’ bank accounts in amounts far exceeding the reasonable understanding and expectations of borrowers. Through this process of misleading and deceptive Internet payday lending, many of the borrowers are sucked into a vortex of debt and their bank accounts are debited until they are bled dry. Moreover, as a consequence of unanticipated loan extensions, rollovers, and unanticipated interest payments debited from their bank accounts, many of the borrowers incur further harm in the form of substantial overdraft or “insufficient funds” fees from their own banks.
    • Four Oaks Bank permits TPPP-TX’s fraudulent Internet payday lending merchants access to the ACH network to credit (deposit) loan proceeds into borrowers’ bank accounts, and then to debit (withdraw) money for the repayment of the loans, with interest and fees. These fraudulent Internet payday lenders unilaterally access borrowers’ bank accounts based upon authority purportedly granted through fraudulent and misleading loan agreements. TPPP-TX’s fraudulent Internet payday lenders’ ability to control the timing and amount of debits from borrowers’ bank accounts is the key to their ability to commit fraud. Without direct, unilateral access to borrowers’ bank accounts through the ACH network, the Internet payday lenders would need borrowers to initiate each loan repayment. Borrowers that find lenders’ demands for repayment to be inconsistent with their respective understandings of their loan agreements would have an opportunity – before money is unilaterally taken from their bank accounts – to question, reject, or dispute the demand for payment.

[Need a new ACH Processor? Go here: ACH Processor ]

Learn how to open a payday loan business or improve your operations: PaydayManual.com

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