Category: Tribes

31
Jan

Scott Tucker Dirty Money Netflix Ep2 Season 1

In October 2017, Scott Tucker was criminally convicted for his billion-dollar payday loan business. On Friday, he was sentenced to 16 years in prison. (Tucker’s attorney, Tim Muir, received 7 years.)

“As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent,” Joon H. Kim, acting Manhattan U.S. Attorney, said in a statement. “Tucker and Muir sought to get away with their crimes by claiming that this $2 billion payday loan business was actually owned and operated by Native American tribes. Scott and his lawyer attempted to portray their Kansas City based AMG services as Native American owned; thereby having sovereign immunity. The jury disagreed.

Tribe payday loan business

Scott Tucker Payday Loan Business – Tribe Lenders

A lawyer for Tucker told said Scott  Tucker intends to appeal. Tucker is also appealing the $1.3 billion fine leveled against him last year by the Federal Trade Commission.

Meanwhile, Tucker is off to prison for 16 years!

The fact is, Scott Tucker’s payday loan business had thousands of returning borrowers! Why? Because they preferred Scott’s online payday loan product to the few options they had for borrowing a few hundred bucks without a hassle.

It’s true that Tucker employed MANY “tricks” and disclosure failures during the course of his customer’s online borrowing transaction. Too bad! Lenders don’t really have to do this. A lender can reveal ALL the costs, terms and transaction details BEFORE the potential borrower actually “signs on the dotted line” and still build a multi-million dollar loan portfolio. Many publicly traded and privately held companies are achieving this as I type here.

Tribal ownership? It appears that Scott Tucker and Timothy Muir accomplished this “after the barn doors were opened!” Their handling of this arrangement appears to have resulted in their mortal death. (They should have consulted with an experienced tribal chairman/manager like Allen Parker at Consultants4Tribes.com!)

Regarding the payday loan product offering itself, the media ALWAYS fails to disclose that there is more to the 700% interest rate they ALWAYS refer to than first meets the eye. This is an annualized interest rate required to be disclosed by the lender to a customer by the FED’s. By now, everyone knows that these loans aren’t meant to be rolled over every 2 weeks for years! They are scheduled to be paid off on the borrower’s next payday. You borrow $300 and payback $345. No big deal IF you have zero options and you want  a fast loan!

Scott Tucker screwed up! But of course, that’s easy for the rest of us to conclude having the benefit of hindsight! Tucker was a maverick; blazing new trails. As he says in the Netflix “Dirty Money,” Episode 2 treatise on his business, “There was no road map.”

 

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24
Sep

TLE: Tribe Lending Enterprise – Term Sheets, Tribe Resolution, Pro Forma, Marketer/Servicer Agrrement

Allen Parker: Sovereign Matchmaker for Tribe Lending

Allen Parker: Sovereign Matchmaker for Tribe Lending

Tribe Sovereign Nation Documentation, Term Sheets & More

Do you need documents to form a tribe installment. payday. line-of-credit or car title loan company?

I offer term sheets, tribe loan portfolio pro formas, TLE and Tribe Economic Development word docs… everything a new lender or a “servicer/marketer” requires in order to legally and formally launch a tribe owned online loan business.

Many Native American Indian tribes have have authorized consumer financial services businesses as legitimate conduits for generating tribe revenue and develop Tribe’s economy to improve the Tribe’s economic self-sufficiency, to enable the Tribe to better serve the social, economic, educational, and health and safety needs of its members and visitors, and to provide its members with opportunities to improve their own economic circumstances.

In an effort to protect consumers, borrowers and their constituents, all Tribal Financial Service providers are required to be licensed as a Tribal business and by the Tribal Financial Services Regulatory Authority (“TFSRA”), and to adhere to the Tribal Financial Services Regulatory Code, as well as all applicable federal and Tribal laws and regulations.

Tribally Owned and Operated Financial Service Businesses

The Native American Financial Services Association (NAFSA), an advocacy association advocating for responsible payday, installment, title loan and line-of-credit loan products, notes that “tribal online lending provides a critical economic lifeline for sovereign tribes in remote areas.” Revenue and profits generated by tribe payday and installment lending arms is used to fund tribal infrastructure as well as cultural, youth, employment and health care programs.

Investment: $7500.00

Note: All Word Templates are editable for your private use.

  1. Template-Standard Tribe Resolution Creating a Tribally Owned Business
    1. A RESOLUTION OF THE GENERAL COUNCIL OF THE (name of tribe) CREATING AND ESTABLISHING THE TRIBALLY-OWNED BUSINESS (NAME) PURSUANT TO (vesting power in General Council resolution) [Word Doc.]
  2. 3 year Pay Day Lender Loan Volume Projections
    1. (PDF Doc.)
  3. “THE RISKS AND BENEFITS OF TRIBAL PAYDAY LENDING TO TRIBAL SOVEREIGN IMMUNITY”

INTRODUCTION: [25 page PDF by Bree R. Black Horse J.D. candidate at Seattle University School of Law, and an enrolled member of the Seminole Nation of Oklahoma in cooperation with The American Indian Law Journal. Public Domain]

  1. Two Key Tribal Court Cases:
    1. While there have been many, many cases upholding tribal sovereign immunity over the years, two in particular are specific to tribally owned payday loan businesses. [4 page PDF]
  2. 3 Year Proforma.
    1. A 3 year tribe pro forma portfolio [Excel format]
  3. Boilerplate Marketing & Servicing Agreement
    1. Template for TLA & Marketer/Servicer arrangement with Revenue Share Exhibit A. [12 page Word Doc.]
  4. Consulting Agreement
    1. Template Consulting Agreement with Tribe Lending Enterprise [Word Doc]
  5. Resolution
    1. RESOLUTION OF THE GENERAL COUNCIL OF THE (name of tribe) VESTING ECONOMIC & COMERCIAL DEVELOPMENT IN THE GENERAL COUNCIL  [Word Doc]
  6. Car Title Boilerplate Agreement
    1. Example Marketing/Servicing Agreement with TLE [11 page PDF]
  7. Car Title Consulting Agreement
    1. Typical Consultant/TLE agreement specific to car title loan lending [6 page PDF]
  8. Typical Lenders Introduction and Compensation Agreement
    1. Example Tribe/Consultant introduction & revenue share term sheet [5 page PDF]
  9. Example Monthly Payments-Revenue Share Agreement
  10. Typical consultant – TLE revenue share statement [1 page PDF]
  11. Example of Typical Non-Recourse Promissory Note & Security Agreement
    1. Ordinary Borrower/Lender capital security agreement [4 page PDF]
  12. Lawyers’ View: Minimizing Regulatory Enforcement Actions Against TLE and Service Providers
    1. Important Factors in a Tribal Lending Relationship [3 page Word Doc]
  13. Frequently Asked Questions Regarding the Mechanics of TLE-TOB/Marketer-Servicer Collaborations
    1. Allen Parker responses to FAQ’s submitted by potential consultants, tribes, and providers of capital. [2 page Word Doc]
  14. Typical TOB Lenders’ License
    1. [19 page Word Doc] A financial services license authorizing the TOB to do business “THIS IS TO CERTIFY that, consistent with Section 4 of the Mahalo District of the North Dakota Tribe Tribal Financial Services Regulatory Act, the enterprise under the jurisdiction of the Mahalo District of the North Dakota Tribe has been licensed by the Mahalo District of the North Dakota Tribe’s Tribal Financial Services Regulatory Commission to provide financial services in furtherance of the Tribe’s economic self-sufficiency and political self-determination. It is…”
  15. Example Consultant- Lender Representation Agreement Boilerplate
    1. As titled, an example Consultant retainer/representation agreement [2 page Word Doc]
  16. Example Consultant- Lender Representation Agreement Boilerplate
    1. As titled, a template for consultant –services/marketer agreement [1 page PDF]
  17. Example Declaration of Servicer-Marketer Skill Set Submitted to Tribe
    1. As titled, a sample declaration to tribe regarding servicer/marketer skill set [1 page PDF]
  18. Template for Statement of Consultant-Servicer-Marketer Power Point Presentation to Interested Parties
    1. Editable Power Point presentation [12 page PP]
  19. Typical Tribe/Servicer/Marketer Credit Reporting Business Rules
    1. As titled, a phenomenal Excel list of go/no-go CRA implemented business rules [Excel 10 pages]
  20. Template for “Finders’ Fee”
    1. As titled, editable Finders’ Fee for use by Consultants [2 page Word Doc]
  21. Template for “Finders’ Fee”
    1. As titled. A second version of a Finders’ Fee
  22. Example Business Development Agreement
    1. As titled, editable template for business development agreement between TLE & Consultant [5 page Word Doc]
  23. Term Sheet
    1. As titled. [4 page Word Doc]
  24. TLE-Lender-Services/marketer Bank & Loan Flow Chart
    1. As titled, an visual of “how the money flows.” [1 page PDF]
  25. “Tips for Tribe Economic Directors”
    1. As titled, a public domain analysis for tribal economic development principles. [9 page PDF]
  26. Limited Solicitation RFP
    1. A typical Request for proposal submitted by TLE’s [2 page Word Doc]
  27. PDL Sovereign Nation Manual by Allen Parker
    1. An analysis of the TLE Model [8 page PDF]

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12
Jan

Tribe Sovereign Status at Risk? WikiLeaks?

By: Jer Ayles at Trihouse Consulting. 702-208-6736

There’s an interesting “Conversation” written by Matthew Fletcher Professor of Law & Director of the Indigenous Law & Policy Center, Michigan State University.

His thesis is that a negative outcome of a personal injury case under review by the Supreme Court could expose Indian tribes to new legal risks and put their “sovereign immunity” status  in jeopardy.

Certainly, as a direct lender, a consultant to tribes and a conduit for capital infusions into tribal business enterprises, this topic and it’s outcome are of great interest to both me and my clients.

So, first my thoughts followed by a link to Professor Fletcher.

So long as the sovereign tribe maintains a forum for litigants to bring suit and be fairly adjudicated, I see no issues here. It’s as if a limo driver employed by the French Embassy were in a similar circumstance. There are legal avenues for “forum shopping” lawyers in similar circumstances. Tribal businesses have access to insurance as do other entities and sovereign nations. Sovereign tribes do not intentionally shirk their responsibilities. However, having counseled and represented tribes in collaborations with online payday loan and installment loan management groups and capital infusions for several years, I have witnessed instances in which the resources of the tribes have been stretched. This “friction” is not due to a reluctance by the tribes to negotiate fair and reasonable alliances but rather a lack of experience in such business endeavors because Big Brother in D.C. denies, delays and inhibits their financial success. Success that would enable the tribe to fund their own businesses, build infrastructure including medical care, education, housing… and GET OFF THE GOVERNMENT TIT as they prefer to do!

Jer Trihouse Consulting

Jer Trihouse

Finally, having equity in payday loan and installment loan stores plus my own capital at work via online lending portfolios and continuing to serve payday lenders, installment loan lenders, car title loan lenders, investors… in a consulting capacity, I certainly understand why there are those in our “micro-lending/alternative lending” industry who would like nothing better than for the tribe lending model to fall off the face of the earth. Why? Because state licensed lenders perceive an online tribal lender as having the advantage of zero regulatory, compliance, auditing, etc. oversite. Well, as President Trump often says,”WRONG!” I will not dwell on all the regulatory hoops and convolutions tribal lenders must comply with at this time but I assure you dear reader that THERE ARE MANY.

Ultimately, there is room in the business of lending money for all players and licensing models. Whether you’re a small mom-and-pop with a tiny portfolio and just a few core customers or a publicly traded behemoth like Enova, there is, and will continue to be, demand for your inventory: MONEY!

Zero lenders in the business of lending money to consumers and small business for the long-term will embrace the abuse of their customers. Zero lenders will risk the wrath of the FED’s, the State, their peers and MOST OF  ALL their friends and family members; their community.

Of course there are “outliers.” They exist in all industries including the media and in government. But eventually, as we have all witnessed during this LONG election cycle, Julian Assange will get the DOPE on the bad guys! And the results ain’t pretty!

So… on to Professor Fletcher and “The Conversation.

Comment? Reach out! Help? Let me know! Haters? Bring it on… I’ve been at this awhile. Meanwhile, 2017 is proving to be ONE HELL OF AN OPPORTUNITY!

Signing off: Jer Trihouse. 702-208-6736

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16
Sep

Connecticut: Tribe Payday Loan Lender May Continue

PayDay Loan Ruling: Connecticut Sovereign Nation Status

The state of Connecticut’s banking department must decide whether to appeal a ruling that appears to allow an Oklahoma Indian tribe to continue to offer payday loans in Connecticut. The Otoe Missouri Tribal Nation brought a lawsuit claiming tribal sovereignty protects it from Connecticut usury rate enforcement, after the Connecticut banking department determined the Otoe Missouri Tribal Nation had violated state loan laws. The Otoe Missouri Tribal Nation offres payday loan products having interest rates of more than 400 percent APR’s. However, a superior court judge has found in the tribe’s favor saying “its rights have been prejudiced.”

And the beat goes on…

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12
Feb

Native American Sovereignty & Payday Loans

Payday Loan Lending via Native American Tribes

The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products appeared today before the House Financial Services Committee to defend the rights of tribes to employ e-commerce to offer consumers payday loan products.

Their efforts are directed toward the CFPB proposed lending rules about to be published. These rules appear to be a heinous attack against consumers in need of financial services choices and payday loan lenders.

“Sherry Treppa, Chairperson of the Habematolel Pomo of Upper Lake offered impassioned testimony on the struggles her tribe has overcome through the centuries from staving off existential threats to ensuring economic self-sufficiency. Chairperson Treppa said the tribe’s decision to enter into ecommerce short-term lending empowered her Nation to finally rebuild and transform its economy, education programs and the social services it provides to its most vulnerable members.”

“In contrast to our experience working with other federal agencies as well as state and local governments, the CFPB has refused to engage in a meaningful dialogue about our shared interests and so far has shown little interest to work together, where necessary, as co-regulators,” said Chairperson Treppa. I remain concerned that the CFPB is developing its proposed action in a vacuum without consulting with tribes to learn about the innumerable tools that we have developed to ensure that we conduct business in a manner that is fair, responsible, compliant and benefits our tribal members and the American consumer.”

Native American Tribes to Congress: Respect Our Sovereignty

WASHINGTON, Feb. 11, 2016 /PRNewswire-USNewswire/ — Appearing today before a House Financial Services Committee hearing examining the treatment of Native Americans by the Consumer Financial Protection Bureau (CFPB), a key Native American leader urged Congress to once again stand shoulder-to-shoulder with Indian Country to help ensure the CFPB respects the historic government-to-government relationships of federal entities…Continue Reading..

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