Native American Sovereignty & Payday Loans

Posted by PaydayLoanGuy / Tribes

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..

Native American Sovereignty & Payday Loans

08
Feb

Tribe Payday Loans & Arbitration Agreements

Posted by PaydayLoanGuy / Tribes

It’s been legally established that federally recognized Native American Indian Tribes funding payday loans are entitled to their own laws and legal systems and generally don’t necessarily have to follow state or even federal laws. [There are exceptions such as TILA…]

The payday loan lender Cheyenne River Sioux stipulate in their loan contract:

“According to the contract, any dispute connected to loan collection would have to be submitted to an arbitration conducted by the tribe or an authorized representative in accordance with the tribe’s consumer dispute rules.” Another provision said that, “At the borrower’s choice, the American Arbitration Association or Judicial Arbitration and Mediation Services could administer the arbitration.”

However, some courts have determined that the Cheyenne River Sioux did not create, nor employ, a consumer arbitration process nor have anyone assigned to perform these arbitrations.

BIG MISTAKE!

Fourth District Judge Harvie Wilkinson reversed a previous court’s decision regarding Western Sky and Martin Webb. Payday loan lenders DO NOT WANT TO BE SUED in a class action. Typically, payday loan lenders insist payday loan borrowers to sign a contract that basically states they can’t bring one. Over the years, the Supreme Court has upheld such clauses. Legal opinions recognize that this agreement can result in “effectively vindicating” federal rights. So long as some remedy exists for a borrower, the courts have upheld this view.

Per Wilkinson’s, it would appear that any contract that rejects the application of federal law can’t be enforced. I take this to mean this decision maylikely reduce federally recognized Native Amenrican Indian tribes’ sovereignty rights.

We shall see. Here’s a link to the Court’s decision: Martin Webb-Delbert Services-Western Sky

15
Sep

Tribe Business Enterprise Payday Loan Legal Update

Posted by PaydayLoanGuy / Tribes

If you have a serious interest in the tribe sovereign nation lending model, READ THESE. There are two. Dig deep and you’ll be rewarded!

“With over one quarter of American Indians living in poverty, nearly twice the national average, it has never been more important to promote confidence in the American Indian economy — this confidence is threatened when courts do not give full force and effect to contracting parties’ desire to resolve their private disputes using tribal courts and tribal law.”

ISSUES PRESENTED FOR REVIEW

The Decision will have disastrous consequences for Indian Country businesses and their ability to engage in off-reservation electronic commerce, whether the business is tribally owned or owned by an individual tribal member, in contravention of well-established Congressional policy and Supreme Court jurisprudence supporting tribal economic development.

SUMMARY OF ARGUMENT

“Amici argue that the Panel’s decision, particularly the Panel’s new requirement that a non-Indian must enter the reservation in order for a tribal court to have jurisdiction or for tribal law to apply, will decimate opportunities for tribal electronic commerce.

Amici also argue that the Decision will contravene well established Congressional policy and Supreme Court jurisprudence supporting tribal economic development, as well as international law requirements prohibiting discrimination against indigenous peoples.

ARGUMENT

The ability of tribes and tribal members to engage in electronic commerce on equal footing with their off-reservation counterparts is critical to tribal economic development in the modern era.

Amici are gravely concerned that the Decision fundamentally mischaracterizes the scope of tribal court jurisdiction over non-member activity and therefore requests either (1) that this Panel withdraw its decision and affirm the judgment of the district court, or (2) that the Court review this matter en banc. American Indian economic development – whether driven by tribally owned…Read the remaining Argument at the Original Source:

First & Second

How to Start a Payday Loan Business Manual

tribe payday loans

26
Apr

Regarding: “Tribal Online Lenders Need a Legal Attitude Adjustment”

Posted by PaydayLoanGuy / Tribes

Tribes have long suffered by being disenfranchised from participation in e commerce. It’s the right and duty of a sovereign nation to develop any and all conscionable opportunities for its members to succeed.

To deny any tribe, particularly those in the position of being geographically remote and unable to participate in natural resource, gaming, and energy enterprises, the benefits of participating in online lending, is nonsensical.

Tribes have the ability to add competition to an industry that sorely needs it. Millions of borrowers would be better off. And so will tribes.

YES I am biased. Jer – Trihouse

Galanda Broadman proposes some interesting startegies in her piece, “Tribal Online Lenders Need a Legal Attitude Adjustment.”

A review of recent federal judicial decisions against tribal online lenders shows that they are losing the war–resoundingly.

Arguments under Tuscarora that federal consumer protection laws of general applicability, have fallen flat. Arguments that these tribal enterprises are immune from federal enforcement action (see U.S. v. James), have not surprisingly fared even worse. Tribal sovereignty is being eroded in the process of each federal court controversy.
cfpb-fed-2

The tribal online lending industry needs a legal attitude adjustment. Or is it only a matter of time before the industry meets its demise. Instead of throwing traditional federal Indian legal arguments against the walls of federal courthouses, in hope that they stick–they haven’t yet–the industry needs to heed lessons learned by other tribes when over-zealous federal agencies like the IRS, FBI or ATF come barreling onto an Indian reservation or into a tribal economy.

Among other non-conventional tribal defense strategies, one that has been deployed effectively against such federal agencies of late is preemptive consultation:

[C]onsultation can be used as a sword—a preemptive strike that forces U.S. agencies to consult… Read more: Galanda Broadman

Category: Tribes

Native American Sovereignty & Payday Loans

Posted by PaydayLoanGuy / Tribes

Payday Loan Lending via Native American Tribes

Native American Tribes to Congress: Respect Our Sovereignty

Tribe Payday Loans & Arbitration Agreements

Posted by PaydayLoanGuy / Tribes

Tribe Business Enterprise Payday Loan Legal Update

Posted by PaydayLoanGuy / Tribes

Regarding: “Tribal Online Lenders Need a Legal Attitude Adjustment”

Posted by PaydayLoanGuy / Tribes

PDF: 500+ Pages $150.00

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