Tag: rent-a-tribe


Minnesota AG Attacks CashCall and Rent-a-Tribe Payday Loan Model

The Minnesota AG accuses CashCall and its subsidiaries, WS Funding and WS Financial, of operating while unlicensed, charging illegally high interest rates and unjust enrichment. The AG  also accuses them of fraudulently claiming loans are immune to Minnesota usury laws because Western Sky Financial –  the entity actually making these loans to Minnesota residents – is subject to tribal sovereign immunity because Western Sky  is owned by an America Indian tribe member (Butch Webb). The loans are  sold to CashCall and its subsidiaries.

For loans less than $350, Minnesota law caps the fees that may be charged on a sliding scale as follows: $5.50 for loans up to $50; 10 percent of the loan amount plus a $5 fee on loans between $50 and $100; 7 percent of the loan amount (minimum of $10) plus a $5 fee on loans between $100 and $250; and 6 percent of the loan amount (minimum of $17.50) plus a $5 fee on loans between $250 and $350.

Per legal counsel for CashCall, highly respected attorney Claudia Callaway, “While it would be inappropriate to comment on pending litigation, we look forward to correcting the record in this matter.”

Tribe owned eCommerce businesses have  evolved significantly in just the past 24 months.  Sophisticated collaborations between experts in sovereign nation law, capital formation and lending operators have blossomed. However, state attorneys general and the majority of the media, are still straining to comprehend the “tribe lending model” and continue to refer to all tribal owned Internet lenders as “rent-a-tribes.”  If you repeat a “theme” frequently enough, people will eventually believe it.

For more insight and analysis of the “tribe model,” visit:
1) Tribe Payday Loan Sovereign Nation Model

2) Minnesota AG Attacks Cash-Call Article