Payday Loan Tribe-Sovereign Nation Model: Huge Win!

Payday Loan Tribal Model Wins Huge Today!

Judge Morris B Hoffman, District Court Judge for Colorado Supreme Court, granted the tribal entities motion to dismiss, vacated orders enforcing administrative subpoenas and discharged all warrants associated with tribal officers’ failure to appear on February 13, 2012.

In Cash Advance v. State ex rel. Suthers, 242 P.3d 1099 (Col. 2010) Miami Nations Enterprises and SFS, Inc, tribal payday loan enterprises, The Colorado Supreme Court sustained the tribes ability to offer payday loans.

Judge Hoffman focused on the following issues:

1) The Tribes Created the Entities Pursuant to Tribal Law
2) The Payday Loan Enterprises Are Owned and Operated by Their Tribes
3) Giving the Tribes Immunity Will Protect their Tribes’ Immunity
4) The State’s Sham Argument
5) Waiver of Immunity

I’m not a lawyer so I will not delve deeply into the decision other than to comment that you REALLY must read the ORDER! It’s 27 pages in length and absolutely FASCINATING!!! It delves into the economic benefits the tribes’ have experienced, the “deal” with the payday loan management team, the legal precedent backing up Judge Hoffmann’s decision…

I conclude the sovereign nation model will be embraced by more tribes. Groups with significant payday loan experience will be in greater demand by tribes than they already are. The cost of entry to those waiting on the sidelines for this model to mature and perceived to be without risk will ramp up dramatically.



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