indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
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...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Oglala Sioux Tribe heads to election season (10/23)
Al Caroll: Recognize tribal sovereignty in new US Constitution (10/23)
Michael Baines: Senate candidate battles Alaska Native rights (10/23)
Ho-Chunk Nation woman named president of Girl Scouts board (10/23)
3rd Circuit won't force town to repatriate Jim Thorpe's remains (10/23)
Navajo Nation's top court orders new ballots without candidate (10/23)
Alaska Federation of Natives ready to open annual convention (10/23)
Alaska governor to sign Native languages bill six months later (10/23)
Rep. Don Young blames government 'largesse' for suicide rate (10/23)
Washington player says tattoo represents Cherokee heritage (10/23)
Crow Tribe seeks renewal of Indian Coal Production Tax Credit (10/23)
Native advocates come together to combat domestic violence (10/23)
Opinion: Tribes exploit loopholes in America's political system (10/23)
Otoe-Missouria Tribe announces plans for new gaming facility (10/23)
Rival leaders of Chukchansi Tribe to meet amid casino closure (10/23)
Navajo Nation challenges lawsuit over death of casino patron (10/23)
Law Article: Judge restricts BIA authority in Class III dispute (10/23)
Column: Election won't end North Fork off-reservation casino (10/23)
Eyapaha Today: Oneida singer follows in mother's footsteps (10/22)
Native Sun News: Candidate seeks investigation into program (10/22)
Ivan Star Comes Out: Lakota people disrespect our language (10/22)
Cedric Sunray: Standing together to fight tribal disenrollment (10/22)
SCIA to hold listening session at NCAI on Indian education bill (10/22)
FNDI urges passage for Indian Teacher Loan Forgiveness Act (10/22)
Chumash Tribe praises BIA movement on land-into-trust bid (10/22)
Steven Newcomb: The role of Latin in empire and colonization (10/22)
Christopher Chavis: Navajo court got it wrong in fluency case (10/22)
Navajo Nation presidential hopeful to be removed from ballot (10/22)
Aging BIA school on Navajo Nation awaits replacement funds (10/22)
Review: NMAI treaties exhibit underscores misunderstandings (10/22)
Alaska Native elders and youth share issues at annual meeting (10/22)
Shinnecock Nation allows felons to hold office in certain cases (10/22)
2nd Circuit hears appeal from former chairman of Pequot Tribe (10/22)
Rep. Don Young criticized for comments to high school students (10/22)
Candidates differ on Spokane Tribe's off-reservation casino bid (10/22)
Poarch Creeks to add hotel to casino with $65M expansion plan (10/22)
Salt River Tribe concerned about Tohono O'odham Nation casino (10/22)
North Fork Rancheria blames rival tribes for holding up compact (10/22)
Ballot proposal authorizes more Class III games in South Dakota (10/22)
Blog: Predictions for gaming with Hillary Clinton in White House (10/22)
Native Sun News: Activists take annual swim to Alcatraz Island (10/21)
Mark Trahant: Alaska Natives ready for conference and election (10/21)
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.