Tribe Payday Loans – Consultants4Tribes.com

Continued Federal Commitment to Tribe Economic Development

Allen Parker — Sun, 23 Feb 2020 23:49:42 +0000

Continued Federal Commitment to Tribe Economic Development

This is a re-Posting of a piece written for Consultants4Tribes.com. The payday loan space, and collaborations with North American Tribes, continues today at a rapid pace! Federal commitment to tribes is a theme that many new “players” in the small dollar loan niche inquire about.

WASHINGTON – The Native American Financial Services Association (NAFSA) applauded the Senate Committee on Indian Affairs’ continuing commitment to the enduring strength of federal- tribal relations.

During a hearing, the Senate Committee on Indian Affairs made it clear that the tribes have the undisputed right of self-governance and self- determination. Indeed, testimony throughout this hearing repeatedly reinforced the principle that self-governance and self-determination are fundamental components of Native American culture and vital elements of every Native American community across the country.

Specifically, self-governance and self-determination compacts make it possible for even the most rural tribes to generate needed revenue through their own businesses, operate effective law enforcement systems, and improve school curriculums that better meet the needs of all Native American students.

Barry Brandon, Executive Director of NAFSA, voiced his organization’s full endorsement of the Indian Affairs Committee’s actions – led by Senator Daniel Akaka (D-HI) –and noted the importance of self-directed economic growth initiatives. (Note: The Senator passed away in December of 2012.)

“We deeply appreciate Senator Akaka’s and the Senate Committee on Indian Affairs’ commitment to preserving native culture, protecting self-governance, and promoting self-determination rights,” Brandon said. “Our members are steadfast in their agreement that self-reliance and self- determination are keys to the government-to-government relationship between tribes and the federal government.”

As background, The U.S. Department of the Interior, Office of Self-Governance is responsible for the execution of the Tribal Self Governance Act of 1994. President Clinton on October 25, 1994, signed the Tribal Self Governance Act of 1994 into law. At the hearing, Lawrence Roberts, Deputy Assistant Secretary of Indian Affairs for The Department of the Interior; Ian Erlich, President of Maniilaq Native Association; Charles Head, Secretary of State for Cherokee Nation; and Noelani Kalipi, President of TiLeaf Group, testified.

About NAFSA 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. Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

Allen Parker: http://www.Consultants4tribes.com

Tribe Payday Loan Lending: An Additional Layer of Legal Protection

Allen Parker — Thu, 05 Dec 2019 04:17:28 +0000

As we are all aware, the Wall Street Journal did a story on payday loan companies using a tribal relationship strategy to avoid payday loan state-by-state licensing. Attacks on these relationships by state attorney generals have resulted in the relationships being upheld as extensions of sovereign immunity.

The Dodd-Franks legislation targeted payday loans under its consumer protection provisions. While my understanding is that the CFPB federal agency will respond on a complaint only basis rather than go after payday loan companies proactively, this becomes another reason for payday loan companies to pursue the sovereign model.

Why? Because the practices of payday loan companies without the protection of sovereign immunity are subject to state-by-state regulations, legal attack and now consumer protections pursuant to federal law.

Tribal joint ventures between payday loan companies and federally recognized tribes, however, extend the tribe’s sovereign immunity from legal recourse to the joint venture.

Moreover, tribal lobbying groups such as the Native American Fair Commerce Coalition (www.savethetribe.org) have arisen to protect these joint ventures under the aegis of protecting sovereign immunity.

A NO-NO: TRIBAL SOVEREIGN CLAUSE OMITTED

Allen Parker — Sun, 24 Mar 2013 22:59:54 +0000

The owner of California Parking Services had already pled guilty to bribing the tribal chairman of the Soboba Band of Luiseno Indians with $50,000 in order to secure a valet parking contract at the Soboba Casino in March 2007.

Now, the company has also lost its appeal in a civil case (California Parking Services Inc. v. Soboba Band of Luiseno Indians) that claimed the tribe backed out of the contract in June 2009, well before the company’s three-year contract was up.

California Parking Services had said it tried to compel arbitration in accordance with its agreement with the tribe after its contract was voided. The tribe said no, citing tribal sovereignty. The Riverside County Superior Court sided with the tribe. On July 20, so did the state Court of Appeal.

The contract California Parking Services had notably omitted rule 48(c) of the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association. That rule would have given the state and federal courts the jurisdiction to award a judgment. Without it, the arbitration clause in the agreement was essentially pointless.

A reminder for businesses doing business with tribes, according to a quote from another case cited in the appellate decision: “As a matter of federal law, an Indian tribe is subject to suit only where Congress has authorized the suit or the tribe has waived its (sovereign]) immunity.”

There have been some cases where a tribe gave up that sovereign immunity in the language of its contracts, but that didn’t happen in this case, according to the decision.

“Whether the arbitration clause in (another case) incorporated the
entirety of the Arbitration Rules of the American Arbitration Association, the Soboba Band’s clause in its contract with CPS explicitly excluded … the rule granting federal or state court consent to enter judgment upon the arbitration award.”

The tribe’s chairman, Robert Salgado, in the meantime, has pled guilty to accepting $875,000 worth of bribes from California Parking Services and four other companies in exchange for contracts.

From The Press-Enterprise of the Inland Empire

It’s About Sovereignty, Not the Payday Loan Industry

Allen Parker — Tue, 12 Mar 2013 03:20:02 +0000

In previous blogs, I’ve emphasized that the right of federally recognized tribes – sovereign nations – to pursue economic development has been assured through court decisions, congressional legislation, treaties, etc. And because of this right, tribes and associations representing tribes have made their right to do business with payday loan companies a sovereignty issue, not a payday loan industry issue.

Because I worked for a federally recognized tribe for almost six years, I learned about and experienced sovereignty from the tribal side. I came to understand and respect its power and how the continuance of tribal sovereignty is pursued everyday in the federal political arena.

The September 25th issue of the Los Angeles Times carried an article on tribes and their relationship with President Obama. It is important for those of you in the payday loan industry to understand how sovereign tribes are effective in the political arena. Therefore, what follows is a redacted Times article.

Indian tribes, with more clout and money, find an ally in Obama

Native American tribes, wielding new clout with casino income, are betting strongly on Obama’s reelection.

By Matea Gold and Joseph Tanfani, Washington Bureau

September 25, 2012, 2:07 a.m.

WASHINGTON — At a July fundraiser in the elegant Mandarin Oriental hotel near Washington’s Tidal Basin, President Obama met with some of his most steadfast supporters — two dozen political and business leaders eager to write sizable checks to help keep him in the White House.

All were leaders of Native American tribes, who pressed their issues with a president they say is attuned to their needs.

Bill John Baker, principal chief of the Cherokee Nation, told Obama his Oklahoma tribe was owed $50 million for its costs of administering federal health services.

“He said, ‘Let me look into this and see what we can do,'” Baker recalled. A week later, he received a letter from the White House pledging to follow up. A White House spokesman said the administration had been reaching out to many tribes on the same issue.

“President Obama is a promise keeper,” Baker said. “He promised that he would work with Indian country, that he would help us, and he has done that at every turn.”

The tribes have shown their gratitude, giving at least $2.5 million to Obama’s reelection campaign through the end of July — far outstripping their donations in other recent presidential elections, according to data provided by the nonpartisan Center for Responsive Politics.

Republican challenger Mitt Romney has just begun to make appeals to tribes, holding a fundraiser at his Boston headquarters last month. So far, he has raised about $750,000 from tribes, according to a campaign official.

The donations highlight a potentially lucrative and, until now, largely untapped source of funds for presidential politics. Unlike corporations and unions, tribes can give directly to candidates. And because of their status as sovereign nations, they can donate more to presidential campaigns than individuals, who cannot give more than $117,000 in federal donations every two years.

Tribes, primarily those engaged in the $26-billion Indian gambling industry, already have become major players in state and congressional politics. In California, for example, four tribes spent more than $100 million to pass a ballot measure allowing them to expand casinos in 2008.

Tribal leaders say Obama won their loyalty by doing more for Native Americans than any other president. Obama — dubbed Barack Black Eagle when he was adopted by the Crow Nation during the 2008 campaign — is the first president to hold an annual summit with leaders from the 566 federally recognized tribes.

The tribes received $3 billion as part of the 2009 economic stimulus package. In addition, the administration beefed up tribal law enforcement powers and improved Indian healthcare services.

Perhaps most significant, the administration has settled billions of dollars in outstanding land and trust claims, including a 13-year-old class-action lawsuit originally brought by Elouise Cobell, a member of the Montana Blackfeet Nation, alleging that the federal government had cheated Native Americans out of income from land and mineral rights the government managed on their behalf for more than a century.

At a Native American caucus held during the Democratic National Convention in Charlotte, N.C., administration officials reminded tribal leaders that Obama ended the contentious Cobell litigation.

“Barack Obama said he wanted it resolved and he wanted to do good things for Indian country to address the injustices that had happened,” said Interior Secretary Ken Salazar, whose department oversees most Indian affairs.

Until Obama’s election, “what the United States has done is essentially taken a position that Indian country is something to almost be forgotten,” Salazar said. “Your president, Barack Obama, Black Eagle, has said that’s not going to be the case.

“He has your back, and so come this November, we need you to have his back.”

A key player who is both helping Obama’s reelection and representing tribes in claims against the government is Washington lawyer Keith Harper, who signed on early to the Obama campaign in spring 2007 and helped design a strategy to woo tribal leaders.

Harper, a member of the Cherokee Nation, helped organize the July fundraiser, as first reported in Indian Country Today, a Native American publication, as well as an earlier one in January. He served on the president’s 2008 transition team, has helped raise more than $500,000 for Obama’s reelection and co-hosted the Native American caucus at the convention.

During the 2008 campaign, Obama met about a dozen times with tribes across the country, including a visit that May to the Crow Indian Reservation in Montana, where he was given a Crow name that translates as “One Who Helps People Throughout the Land.”

Cedric Black Eagle, the tribal chairman whose parents adopted Obama in a traditional ceremony, praised him for his efforts to honor old obligations to Indians. “I think that’s really important for us, as almost the forgotten people in this country,” he said.

At least 47 tribes have donated to Obama’s campaign or the Democratic National Committee in the last two years. Among them are some of the top Indian casino operators, including prominent California tribes, such as the Morongo Band of Mission Indians in Banning ($135,800) and the Pechanga Band of Luiseno Indians in Temecula ($126,600).

Melvin R. Sheldon Jr., chairman of the Tulalip Tribes of Washington state, which have donated more than $181,000 to the campaign, said he expected “another surge of giving between now and November.”

The Tulalip Tribes have received more than $10 million in stimulus funds, including $2.7 million for early childhood development services and $2 million to restore a fish passage for Chinook salmon on the lower Snohomish River.

The Cherokee Nation received more than $10 million to repair highways and build housing, among other projects. Baker, the tribe’s chief, called the Recovery Act “a godsend.”

“We live and die in D.C.,” said Baker, whose iPhone has a picture of him with Obama. “There are so many programs in the past we’ve had to go hat in hand.”

There is much at stake for tribes in the coming four years: outstanding trust claims, efforts to expand tribal authority over domestic violence cases and regulation of online gambling.

At the Native American caucus in Charlotte, Harper urged a room crowded with tribal representatives to do everything possible to reelect Obama if they wanted the “inclusion of Indian country in every policy consideration.”

White House counselor Pete Rouse, who referred to Harper as “my old friend Keith,” told the leaders that their support had been noticed. “Believe me, you’re having an impact,” he said. “Certainly the president knows about it, the president’s people know about it.”

Richard A. Monette, former chairman of the Turtle Mountain Band of Chippewa Indians in North Dakota and an assistant professor at the University of Wisconsin Law School, has misgivings about the tribes’ increasing role in Washington politics.

He says tribal donations are mostly casino money in Indian dress, and he worries that playing big-money politics may end up damaging the tribes.

“They used to have a little bit of moral high ground because of the historical situation. They used to know who their friends were in D.C.,” said Monette, who formerly worked at the Senate Indian Affairs Committee and at the Bureau of Indian Affairs. “Now it’s the friends they bought and paid for, and when they stop paying, their friends are going to leave too.”

Tribal leaders say it’s silly to expect Native Americans to play by different rules from those of other interest groups.

Jacqueline Pata, executive director of the nonpartisan National Congress of American Indians, said some Indians, as members of sovereign nations, once shunned the idea of voting for president. Now they realize that engaging in national politics — and writing checks to campaigns — is “important for keeping our voice at the table.”

“Whether we like it or not, it’s the way America runs,” Pata said, “and it’s the system that’s out there.”

Tribe Payday Loans

Allen Parker — Tue, 19 Feb 2013 18:47:49 +0000

An Additional Layer of Legal Protection
By Allen Parker

As we are all aware, the Wall Street Journal did a story back in February on payday loan companies using a tribal relationship strategy to avoid payday loan state-by-state licensing. Attacks on these relationships by state attorney generals have resulted in the relationships being upheld as extensions of sovereign immunity.

The recent Dodd-Franks legislation targeted payday loans under its consumer protection provisions. While my understanding is that the new federal agency will respond on a complaint only basis rather than go after payday loan companies proactively, this becomes another reason for payday loan companies to pursue the sovereign model.

Tribal joint ventures between payday loan companies and federally recognized tribes, however, extend the tribe’s sovereign immunity from legal recourse to the joint venture.

Moreover, new tribal lobbying groups such as the Native American Fair Commerce Coalition and Native American Financial Services Association have arisen to protect these joint ventures under the aegis of protecting sovereign immunity.