indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Falmouth Institute - December in Las Vegas
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Delvin Cree: Predatory lending a cash cow in Indian Country
Friday, February 17, 2012
Filed Under: Opinion
More on: delvin cree, payday lenders, sovereign immunity, tmbci
 
The new cash cow for Indian tribes is predatory lending. Some do it - some don't; in a sense, I don't know why any tribe would want to this kind of loan sharking business. For some, they say it's a "win-win" situation.

This practice of preying on people who are desperately in need of money has been shifted onto Internet sites by "tribes" with tribal immunity status.

For the past several years tribes have been approached by non-Indians to do business in the lending industry. These same non-Indian lending institutions have faced different regulatory actions by states, which either put a cap on their high interest rates or, in some cases, have banned these lenders from doing business. These lenders have approached tribes to continue their predatory lending practices.

A recent court ruling in Colorado was praised by a group called the Native American Lending Alliance. This group which was formed last year consist of several tribes who are in business of performing high interest loans to people over the Internet. The ruling in "Cash Advance v. State of Colorado" was based on predatory lending by a tribe with tribal immunity. These same tribes who are the new on-line payday lenders will continue to conduct business as usual with the help from non-Indian lenders.

Here at the Turtle Mountain reservation, our leaders have been discreet. It wasn't until our chairman released a statement recently about the Colorado court hearing did some of our tribal people know we were going to conduct business in the area of high interest lending. Our chairman, Merle St. Claire is also a co-chair of the Native American Lending Alliance.

Last year I published a story in our tribal newspaper which referred to our tribal leaders proposing to start up a payday loan program on the reservation. At the time, a resolution was put in place to support the new endeavor. The resolution was not supported by the full tribal council, as two members voted against the proposed business venture.

For years, tribal leaders have confronted congressional leaders in Washington about the victimization tribal nations have endured over the past few centuries. I'm sure tribal leaders today who are allowing predatory lending are doing the same complaining. In a sense, this is hypocritical behavior. Why criticize the government when your doing the same thing?

In a published story late last year about predatory lending, the Chippewa Cree Tribe of Montana has said its annualized interest rate on loans is 360 percent. Payments are made over a period of months and are usually done in monthly or biweekly installments. In the same report it states a first time borrower who borrows $600.00 ends up paying $1,261.32 in 12 biweekly payments.

Not much can be done about the high rates being charged by tribal lending institutions because of sovereign immunity. Tribes can regulate and make their own laws because of this status. The non-Indian lenders know this. This is why they are partnering up with tribes and continue to conduct predatory lending practices.

Delvin Cree is a writer and columnist for The Tribal Independent, an alternative online news source for the Turtle Mountain Band of Chippewa. Cree also is also a contributor to the tribal newspaper, The Turtle Mountain Times.

Related Stories:
Delvin Cree: Favoritism in Turtle Mountain tribal employment (2/3)


Copyright © Indianz.Com
More headlines...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Choctaw Nation Trial:
Trial on Choctaw Nation fraud winds down with final testimony (11/20)
Leader of Choctaw Nation faces tough questions in fraud trial (11/20)
Former leader of Choctaw Nation testifies in criminal trial (11/20)
Anticipation builds for testimony of Choctaw Nation leaders (11/20)
Trial exposes fraud against Choctaw Nation for casino project (11/20)
Latest News:
Native Sun News: Oglala Sioux woman shot and killed by police (11/20)
Mark Trahant: Lakota honor song wasn't out of place in Senate (11/20)
DOI issues status report on Cobell land consolidation program (11/20)
Greg Grey Cloud explains Lakota honor song after Senate vote (11/20)
Steven Newcomb: Disestablishing the doctrines of domination (11/20)
Sen. Mark Begich: Moving forward for the first people of Alaska (11/20)
Flandreau Santee Sioux Tribe sues South Dakota over sales tax (11/20)
Morongo Band distributes 10K turkeys for Thanksgiving meals (11/20)
Editorial: County and critics must stop fighting Chumash Tribe (11/20)
Editorial: Oklahoma Indian museum benefits the entire state (11/20)
Muscogee Nation finally starts work on $365M gaming project (11/20)
Two tribes making push for off-reservation casino in California (11/20)
Mashantucket Tribe hires new executive for gaming operation (11/20)
Opinion: Catawba Nation makes a sneak attack with casino bid (11/20)
Opinion: Poarch Creek gaming deal won't help state's economy (11/20)
Native Sun News: Northern Cheyenne activists push for change (11/19)
Mark Trahant: Historic election in Alaska with Native candidate (11/19)
Audio: Senate Indian Affairs Committee hearing on child trauma (11/19)
Republicans hold up action on Alaska tribal jurisdiction measure (11/19)
DOI official to give update on Cobell land consolidation program (11/19)
Center for Native American Youth hosts panel discussion in DC (11/19)
Sen. Heitkamp to host panel on child trauma in Indian Country (11/19)
Gyasi Ross: Police shootings aren't just a 'people of color' issue (11/19)
Steven Newcomb: Focusing on liberation and self-determination (11/19)
Crow Creek Sioux man arrested as Senate rejects Keystone bill (11/19)
Leader of Tunica-Biloxi Tribe hit with prescription drug charges (11/19)
Performance sheds light on 'purchase' of Lenape island in 1626 (11/19)
Alaska Supreme Court hears dispute over tribal court authority (11/19)
Editorial: Put end to 'futile' taxation dispute with Chehalis Tribe (11/19)
Confederated Salish and Kootenai Tribes announce $27M casino (11/19)
Oneida Nation announces $100M retail development for casino (11/19)
Mohegan Tribe passed over for second casino in Pennsylvania (11/19)
Native Sun News: Winona LaDuke addresses energy addiction (11/18)
Jeffrey Whalen: Crime and corruption within Oglala Sioux Tribe (11/18)
Doug George-Kanentiio: NAMMYs promote Native musical talent (11/18)
Witness list for SCIA hearing on child trauma in Indian Country (11/18)
Joanne Shenandoah: Protect our Native children from violence (11/18)
Eric Holder: Responding to sexual violence in Indian Country (11/18)
DOJ task force calls for tribal jurisdiction in child abuse cases (11/18)
Rishawn Biddle: Report confirms how BIE fails Indian children (11/18)
Voters of Dry Creek Band oust longtime chair Harvey Hopkins (11/18)
MTPR: Native Americans urged to sign up for healthcare plans (11/18)
Map: Most common Native languages include Navajo and Crow (11/18)
USDA Blog: California tribes work to maintain traditional foods (11/18)
more headlines...


Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.