Tribe Payday Loan Model Part 1 & Scott Tucker

'Incredible Alcatraz (San Francisco)' photo (c) 2009, Dhilung Kirat - license: http://creativecommons.org/licenses/by/2.0/A huge “Thank You” to Nick Sparagis for bringing this to our attention. Sign-up for his Blog Below!!

Mr. Rick Sallinger
1044 Lincoln Street
Denver CO 80203

Dear Rick:

Thank you for the opportunity to respond to your letter in advance of the story CBS4 News is preparing to broadcast.

As already acknowledged in your letter, Mr. Tucker cannot respond to your inquiries regarding the 100% tribally owned businesses because he is bound by a confidentiality agreement. I hope this letter will endeavor to address certain questions and assist your reporting of this matter.

Regrettably, the narrow focus of your questions about these tribal businesses suggests that CBS4 News already has pre-judged this matter and that your story already is complete. Still, you should be aware that Chief Tom Gamble of the Miami Tribe of Oklahoma, in response to questions from CBS News regarding the Miami Tribe’s online short-term lending business, provided a statement that is quite informative. For your convenience, I have enclosed a copy of Chief Gamble’s correspondence, which responded to similar inquiries by stating that:

For several reasons, we believe that online tribal lending, as regulated by sovereign tribal law and subject to federal law, is the safest way for consumers to obtain small personal loans:

• We are fully regulated by our sovereign laws;
• We are fully compliant with all federal laws;
• We offer impartial arbitration for any conflict resolution;
• Our uniform rules and regulations are the same across the country, as compared to the conflicting and confusing rules promulgated by the various states, some of which regulate lending, others of which do not; and
• We categorically abhor and do not participate in the unethical scams that are now creeping onto the Internet by off-shore criminals, trying to collect on unauthorized or non-existent loans, stealing personal information, and the like. Furthermore, we work closely with state and federal law enforcement agencies in trying to prevent and end these scams.

I trust you have contacted tribal officials and officers with respect to questions regarding your story, but in any event, I have forwarded your correspondence to their legal counsel to ensure your story reflects all sides of this complex issue.

Lastly, Mr. Tucker does feel the Colorado Attorney General’s Office has pursued him in a wrongful manner and multiple courts of law in both Colorado and Kansas have agreed. Indeed, these courts have soundly determined that the Colorado Attorney General’s Office has repeatedly acted outside the law.

For instance, Denver District Court Judge Morris B. Hoffman harshly sanctioned Senior Assistant Attorney General Paul Chessin for his conduct in this matter, specifically for his lack of candor, and described Colorado’s Assistant Attorney General Mr. Chessin as “jurisdictionally tone deaf.” As a lawyer who represents the citizens of Colorado, Mr. Chessin should be specially attuned to the limited nature of our constitutional form of government, yet Judge Hoffman found such basic tenets of law were “disturbingly unimpressive” to Mr. Chessin.

Additionally, a Kansas Judge ruled that the Colorado Attorney General’s Office improperly tried to enforce a void and wrongfully procured administrative subpoena. And just recently, another Denver District Court rejected the very same improper tactics employed by the Attorney General’s Office against Mr. Tucker in the case State ex rel. Suthers v. Tulips Investments, LLC, Case No. 10CV8265 (Den. Dist. Ct. Nov. 1, 2011) (granting motion to dismiss). That errors are rampant in the Colorado Attorney General’s proceedings is not a matter of personal opinion – it is unequivocally an issue of judicial notice.

In closing, thank you again for giving Mr. Tucker advance notice of your story. We appreciate you considering the perspectives in this letter so as to ensure a factual and balanced story for your viewers.

Timothy J. Muir, Esq.  NOTE:Part 2, response from the tribe coming tomorrow!  Jer -Trihouse Consulting

Nick Sparagis Blog

Comments ( 2 )
  • Frank M. says:

    Competition by tribes in the payday loan space is good for consumers. However, to paint a broad “offshore lenders are all criminals” swath is harsh. Why couldn’t/wouldn’t an offshore lender embrace consumer friendly practices in an effort to profit long-term? Build a strong brand? Take market share?

  • Nick says:

    You’re very welcome…..and thank you for the recognition!

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