Tag: tribe payday loan


WASHINGTON, DC: The National Congress of American Indians (NCAI) announces November 13, 2013 White House Tribal Nations Conference

WASHINGTON, DC: The National Congress of American Indians (NCAI) is pleased to announce a series of events surrounding the November 13, 2013 White House Tribal Nations Conference. The Conference gives the White House the opportunity to interact with tribal leaders from across Indian Country and the concentration of tribal leaders in Washington, DC allows Native and non-Native allies to discuss a wide variety of policies facing Native peoples.

NCAI will hold a Tribal Leaders Preparatory Meeting prior to the Conference on November 12th. The meetings are not open to press. However, there will be a press conference at 12:30pm and additional time set aside for connecting with tribal leaders.

You think a major discussion point will be “The ACH Tsunami?”


Get the facts at Turtle Talk.


Tribe Payday Loan Business – CNBC Report Wrongheaded

'day in the life: lunch money' photo (c) 2004, marya - license: http://creativecommons.org/licenses/by/2.0/“A little known loophole is letting some payday loan companies dodge state laws and charge interest rates much higher than the states would otherwise allow, a CNBC investigation has found.”

Your CNBC team must have been under a rock the past 10+ years. Payday loans have been offered via the tribe “sovereign nation model” for at least that long.

Much like the gaming industry, the payday loan tribe model has evolved into a highly sophisticated, profitable business enterprise. The “rent-a-tribe” characterization is a thing of the past.

Regarding usury rates, if the so-called consumer activists bothered to familiarize themselves with a payday loan product that 14,000,000 Americans elected to “use” last year, they would immediately recognize that payday loan companies do a much better job regarding fully disclosing all rates and fees than banks and credit unions do. Wells Fargo charges $10 per $100 loaned and debits their PDL customer the moment their customer’s paycheck is electronically deposited in their WF checking account; zero disclosure of a 400% APR and ZERO risk!

Here’s a link to the full CNBC article, “How Some Payday Lenders Charge”


Payday Loan Tribe-Sovereign Nation Model by Marc Benjamin at The Fresno Bee

Marc Benjamin at The Fresno Bee wrote a very informative piece on the payday loan tribe-sovereign nation model at:

The payday loan industry generates $52 billion worldwide each year, and Chukchansi officials hope to get a piece of it. They’re not alone; about three dozen tribes are in the business across the United States, said Allen Parker, a California consultant who works with tribes nationwide.

It’s an ideal business opportunity for tribes in locations too remote to operate a casino successfully, or for tribes whose casino revenues are down.

Although a tribe may need to hire a consultant or management group that takes a cut of profits and ensures the business is run properly, the overall costs can be lower because the tribe doesn’t have to follow state rules, said Jer Ayler, a Newport Beach consultant who runs payday loan storefront businesses and helps tribes with online loan businesses.

That angers regular payday lenders who have to comply with state laws and limits, he said.

“You’d be mad if you spent millions of dollars on compliance and regulatory issues compared with a tribe that can enter with very little capital and utilize the sovereign model to exempt themselves from state licensing regulations and usury laws,” Ayler said.

But a Los Angeles County Superior Court judge said tribes are not subject to California licensing rules because of sovereign immunity, said Mark Leyes, a Corporations Department spokesman.

Sovereign immunity may also provide protection in federal court.

Three tribes and their loan business partners were sued in April by the Federal Trade Commission after more than 7,500 consumer complaints over the last five years.

In the federal case, tribes are accused of overcharging for loans and illegally filing lawsuits against customers. In one case, a company forced consumers who owed them money to travel to South Dakota and face a tribal court that did not have jurisdiction over their cases.

Other contentions made in the federal case: employers were falsely told by tribal companies that they had legal court orders to garnish wages, and tribal companies disclosed an employee’s debt information to employers and coworkers.

The federal case detailed where a loan company charged interest rates and fees totaling $1,925 to pay off a $500 loan.

“We are concerned that the loan documents and website representations are truthful and complete,” said Nikhil Singhvi, a lawyer for the Federal Trade Commission in Washington, D.C.

But the tribes’ lawyer, John Nyhan, who represented two of the same tribes in the recent California case, said he expects the federal government’s case to be dismissed in the tribes’ favor because of sovereign immunity.

Meanwhile, the Native American Financial Services Association is aiming to reduce those types of suits by setting ethical guidelines for tribes to follow when dealing with customers.

Read more here: http://www.fresnobee.com/2012/07/10/2905151_p2/payday-loans-the-latest-venture.html#storylink=cpy


Payday Loans-Offshore-Tribe-State-by-State, Call Centers, Licensing

As those of you who receive my Monthly Newsletter know, the past 30+ days I’ve visited Cancun Mexico, Miami, the Bahamas (Nassau) and, as I write this, San Jose, Costa Rica. All of these fact-finding trips focused on various payday loan licensing models and outsourcing of various integral pieces of payday loan operations to service payday loan consumers and develop strategies to profit in our industry.

I always get some “heat” for discussing these issues and strategies! Some of us are making serious money in the payday loan space and want to “keep it a secret.” Others already in our space worry that the  CFPB and State  AG’s will become aware of our methods and “attack”us. (DUH, they know we exist and when setup by pros there is zip they can do. Just follow TILA, FDCPA, disclose everything clearly and don’t beat on your customers!)

Operators with brick-n-mortars are sometimes envious of the perceived simplicity and low barrier to entry into the Internet payday loan space. Many Internet operators sweat out state/provincial licensing approaches.  Then you have all the brick-n-mortar players who think because they have a solid management Team in place it’s a simple transition to the internet. Nothing could be farther from the truth!

Store-front expertise doesn’t mean jack when attempting to build a successful Internet payday loan operation! I’ve seen very experienced store Teams fail miserably at managing Internet portfolios. You need a much different skill-set and some experienced partners when you have to rely on buying payday loan leads, providing round the clock call-center services, collecting $500 from a consumer in default 1000+ miles away from you, re- marketing to your existing customer base, taking market share away from your competitors, being compliant with all the State/Federal/Provincial laws and regs, getting your payday loan software provider to respond to your requests for support, maintaining a <1% charge-back ratio with your ACH provider and dealing with all the other hassles and risks in the payday loan industry. And let’s not leave out your Search Engine Optimization, Search Engine Marketing, Adwords and Bing account managers and on and on and on.

Why do it? The money! Done well, I know of very little else offering the ROI of payday loan businesses.

You don’t have to have all these skill sets in-house. Find “partners” and vendors that provide the pieces you’re missing. It’s one thing to buy 50 leads/day, and fund 10 of them. Depending on your lead source, your under writing criteria, and your collections Team, this could be accomplished in a small office anywhere using any off-the-shelf software.

But to reach serious velocity, and we estimate at least 325,000 payday loans occur daily just in the  in the U.S., you must evaluate what you bring to the table (capital, legal, marketing, collections, IT, call center expertise…) and create your “secret sauce.”

I’ll follow up on these issues shortly. I’m  wrapping up a convention focused on offshore based payday companies using call centers, lawyers, taxation pros, bankers and financiers and more in Costa Rica this week. These are pros from around the world. The tribes are well represented as well and offer some enticing, sophisticated “boiler plate” that can enable you to reach your goal.

Do you want to thoroughly understand the tribal/sovereign nation model? It’s basically the Texas CSO payday loan business model. The strategy is to employ a “servicer/marketer” and a” Lender.” Read our highly popular CSO/CAB Report and you’re on the road to understanding the payday loan tribe model. Get this… It’s the last item we offer here: http://paydaymanual.com/cash-advance-store.html

And don’t bother to start harping on tax evasion. These business models incorporate methods and strategies to service consumers around the world including The U.S., Canada, AU, Mexico, Scandinavia, Europe, The UK and many more locales. Cost reduction and tax minimization are the goals – just like Google, Coca Cola, IBM, Microsoft and more.

Finally, regarding all you guys that think it’s too late to start a payday loan, car title, scrap gold buying, tax service and more all under one-roof, complementing one another, quit crying! I speak with very competent, multi-unit store owners who are salivating over what they perceive to be a tremendous growth  opportunity.

You want to finally get off the dime and start playing in the ruff and tumble payday loan industry?Put some smart guys together in a room, and build a Team with complimentary skill sets to achieve the dream and IT CAN STILL BE DONE! Pay for solid experience to guide you, find the right vendors to help you down the path and you too can attend Payday Loan – micro-lending conventions around the world on the Governments dime – seek legal counsel :o)






Tribe Payday Loan Lenders: Listen Up

The payday loan industry has been partnering with tribes for a few years. Some of these “partnerships” do not pass muster. But, much like the gaming and energy industries have successfully entered into financially beneficial business enterprises with federally recognized tribes, so can payday loan lenders. Both the tribe and the lender must employ experienced counsel to navigate the challenges.

“Rent-a-tribe” and “sham agreements” are really not necessary to put these deals in place. Our Federal Government specifically supports sovereign tribal nations in their efforts to share in the American dream. However, these enterprises must be created properly with all sides aware of the requirements to create a fair and equitable business, employ full disclosure and solve a need in the market place.

When a break down occurs, you get the following result…

Los Coyotes win case against Eagle Rock Training Center – Military contractor must get its stuff off tribal land by June

A San Diego County Indian tribe has emerged victorious in its legal battle to boot ERTC, a military contractor from its land.

Beginning in 2011, Los Coyotes Band of Cahuilla and Cupeno Indians has been trying to evict Eagle Rock Training Center (ERTC), a combat training facility. The tribe alleged that a 25-year lease agreement with ERTC signed in 2010 by then-tribal spokesperson Francine Kupsch, which also included a waiver of the tribe’s sovereign immunity, was void because it had not been reviewed by the Bureau of Indian Affairs; nor had it been ratified by the tribe’s General Council.

When the tribe attempted to evict ERTC last year, the company refused. Facing physical expulsion from the land by tribal police, ERTC took the tribe to federal court.

Los Coyotes took its case to Intertribal Court of Southern California, which heard arguments in December. Tribal Chief Judge Anthony Brandenburg issued his ruling on Feb. 1, siding with the tribe and rendering the lease invalid.

Chief Brandenburg noted that the contract did not include the official tribal stamp; nor could ERTC provide evidence that the General Council had voted on the lease. ERTC’s attorneys argued that it believed Kupsch could make decisions on behalf of the tribe, a position the judge disagreed with; particularly regarding the issue of waiving tribal sovereign immunity.

“Allowing a single person to do so is unheard of in Indian Country and is contrary to the sacred principle,” the judge wrote.

The judge did not award damages to either party since the tribe had received some compensation from ERTC’s activities. However, the judge made it clear he believes ERTC exploited the tribe’s naivete:

“The bargaining positions of the parties completely favored ERTC. Los Coyotes economically is a poor tribe. Couple with their remote location, high rate of unemployment and lack of economic standing in the Tribal world they are clearly in need. As presented at Tribal meetings and by way of testimony at trial ERTC’s promises to the tribe were almost [too] good to be true, at times grandiose. There is no doubt in the court’s mind that during negotiations ERTC had the upper hand. Promises of Hollywood productions, exposure on the Discovery Channel, million dollar greenhouses, military exercises, a new tribal hall, a children’s park, automobiles and more were made. It is understandable why lacking the same bargaining position, legal and business acumen Ms. Francine Kupsch did what she did. However her good intentions do not compensate for her actions.”

Payday loan partnerships with tribes are being done PROPERLY every month! Pay a few bucks and get this right!

See San Diego City Beat article by Dave Maass for the entire piece.

Jer – Trihouse Consulting 702-208-6736