indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439   fax: 202 318 2182
Fredericks Peebles & Morgan LLP
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Al Jazeera: Tribes face scrutiny for Internet lending operations

Filed Under: Business | Law | National
More on: california, internet, payday loans, upper lake
   


Tribal council of the Habematolel Pomo of Upper Lake. Photo from Habematolel Pomo

Al Jazeera publishes a project on the Internet loan industry in Indian Country, including the involvement of the Habematolel Pomo of Upper Lake in California:
The whitewashed, one-story office just off California’s Highway 20 doesn’t look like much.

But the building is listed as the address of at least four thriving financial enterprises. They are part of the multibillion-dollar industry of online payday loans: short-term loans of up to $1,000 that are sought by low-income people whose bad credit makes them so desperate for a cash advance they will accept interest rates that can exceed 400 percent.

And it’s no coincidence that the same structure also houses the office of the tribal council of the Habematolel Pomo of Upper Lake. The Native American tribe’s lending enterprises have names like Silver Cloud Financial and Mountain Summit Financial, reflecting the Native American heritage of the rancheria, as these settlements are called. The U.S. government established them for landless Indians in California in the early 20th century, but unlike reservations, a single rancheria can include members of multiple tribes.

Tribal sovereignty allows the rancherias’ businesses to claim immunity from state usury laws, making them convenient shelters for lenders who want to evade regulators.

Yet little of the revenue that flows through these tribal businesses ends up in the rancheria or benefiting tribal members, as attested by the cluster of rundown houses nearby, where some members of the tribe live. They don’t look like villainous tycoons preying on low-income Americans. They look more like those cash-strapped loan customers themselves.

The payday lending enterprises are not operated out of the settlement, and Habematolel Pomo members interviewed on a recent visit said none of them had any jobs related to payday lending. In fact, there are few jobs of any kind here. William Snow, 51, left the settlement straight out of high school. “There’s nothing for young folks to do around here,” he said.

Get the Story:
Payday Nation (Al Jazeera America 6/17)


Copyright © Indianz.Com
More headlines...
Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Film company aims to bring Native stories to life (9/2)
Mark Trahant: Alaska Native candidate joins rival in governor's race (9/2)
Walt Lamar: Tribes face problems dealing with legalized marijuana (9/2)
Jennie Stockle: Fans mock Cherokee people with Trail of Tears sign (9/2)
DaShanne Stokes: State-recognized tribes need eagle feathers too (9/2)
Indian studies professor denied position over remarks about Israel (9/2)
Alaska Natives excluded from secret military intelligence program (9/2)
Judge schedules hearing in Gun Lake Tribe's gaming land litigation (9/2)
Viejas Band looking to expand casino after reaching new compact (9/2)
California tribes are drawing large numbers of Filipinos to casinos (9/2)
Tim Giago: Oglala Sioux people aren't afraid to say no to easy cash (9/1)
Native Sun News: Release of secret uranium mining data ordered (9/1)
Mark Trahant: It's past time for tribal leaders to govern the nation (9/1)
Jennie Stockle: A safe space for opponents of offensive mascotry (9/1)
John Christian Hopkins: A big thank you to the friend I never met (9/1)
National Museum of the American Indian celebrates 10th birthday (9/1)
Mother arrested in connection with child's death on Navajo Nation (9/1)
Opinion: Energy development can help secure tribal independence (9/1)
Cherokee Nation announces $170M casino and retail development (9/1)
Tunica-Biloxi Tribe won't be sharing gaming revenues this quarter (9/1)
Seminole Tribe on track to see gaming revenues increase to $2.1B (9/1)
Eastern Shawnee Tribe to reopen gaming facility in February 2015 (9/1)
Editorial: Tohono O'odham Nation didn't play by 'rules' with casino (9/1)
Opinion: Gaming good for Eastern Cherokees but not for fellow tribe (9/1)
Opinion: Federal recognition only means more casinos in California (9/1)
Native Sun News: Tribes walk out of contract support cost meeting (8/29)
Clara Caufield: Northern Cheyenne Tribe spends $2.4M on property (8/29)
Mike Johanns: Retracing steps of great Ponca Chief Standing Bear (8/29)
Steven Newcomb: Racist mascot a sign of deeper problems in US (8/29)
Lauren Jones: Affordable Care Act benefits Native Americans too (8/29)
Gila River Indian Community to see $77.6M from Cobell buy-back (8/29)
Energy boom linked to rise in human trafficking in Indian Country (8/29)
Navajo man heads up Native American Homelessness Task Force (8/29)
9th Circuit hears case over Yakama Nation tobacco manufacturer (8/29)
WAER: ICWA matters handled in 'kangaroo courts' in South Dakota (8/29)
MPR: Red Lake Nation opposes liquor license near dry reservation (8/29)
Tule River Tribe helps remove marijuana operation on reservation (8/29)
Omaha Tribe signs agreement with EPA to improve utility services (8/29)
Las Vegas Paiute Tribe rejected 'gift' from NFL team's foundation (8/29)
KPLU: Spokane Tribe maintains close ties with baseball franchise (8/29)
Opinion: HUD loan program a small step to boost Indian housing (8/29)
DNA study finds distinct population of Native people in Arctic area (8/29)
Tribes closely watching Big Lagoon Rancheria casino land dispute (8/29)
Tohono O'odham Nation to build off-reservation casino in phases (8/29)
State questions Forest County Powatatomi Tribe's slot machines (8/29)
Quapaw Tribe eyes local support for commercial casino in Kansas (8/29)
Native Sun News: Police officers who shot Indian teen get medals (8/28)
Cara Cowan Watts: Laying the groundwork for college scholarship (8/28)
Rudolph Ryser: Indigenous nations need leverage to bring change (8/28)
DOI extends $100M in Cobell buy-back offers on two reservations (8/28)
Cobell buy-backs could return over 38K acres to tribe in Montana (8/28)
Five-year-old Navajo boy sent home from school for his long hair (8/28)
Three charged with murder for death of Mississippi Choctaw man (8/28)
Lummi Nation seeks cooperation after ruling in treaty rights case (8/28)
Artist Gregg Deal takes on Indian mascots for performance piece (8/28)
Sports announcer won't use Washington NFL team's name on air (8/28)
Recruiter from Spokane Tribe's college selected for Peirone Prize (8/28)
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.