Payday Loan regulation foiled

[Schadenfroh]

http://www.npr.org/2011/02/07/133557321/Tribal-Land-Helps-Payday-Lenders-Skirt-State-Laws

Nearly 20 states have either banned payday lenders or imposed interest rate caps that discourage them from setting up shop.
...
California regulators who tried to shut down a group of online payday lenders were surprised when lawyers for the Miami Nation of Oklahoma and the Santee Sioux Nation of Nebraska "pushed their way into the case," Hudson says.

The tribes' lawyers "said these lenders are owned and operated by the tribes and, therefore, they enjoy tribal nation sovereignty, which makes them immune to state laws," Hudson says.
...
"Attorneys for the tribe say that the lenders are legitimate arms of the tribes and that the loans are approved on Native American land," Hudson says.
...
This could also make it tough to implement financial reforms under way in the aftermath of the financial crisis.

While I am not against payday lenders (payday advance / check holding), per se, this way of bypassing regulation is rather disappointing.

 

[JEDIYoda]

While I am not against payday lenders (payday advance / check holding), per se, this way of bypassing regulation is rather disappointing.

__________________

I think it`s fantastic!! Finally the Indians get to win one!! Go Indians!!!

 

[Jiggz]

As long as these so called Indian Payday Loaners only loan to their fellow tribes/Indians and don't complain to the State or Feds for the abuse, I guess they can do it.

 

[Scotteq]

I think it`s fantastic!! Finally the Indians get to win one!! Go Indians!!!

I'm presuming you're being sarcastic...

The interest rates these 'Payday Loan' folks charge are obscene:


445%: http://www.missourinet.com/2011/02/07/48742/



http://www.consumersunion.org/finance/paydayfact.htm

"Payday" loans are small, short-term loans made by check cashers or similar businesses at extremely high interest rates. Typically, a borrower writes a personal check for $100-$300, plus a fee, payable to the lender. The lender agrees hold onto the check until the borrower's next payday, usually one week to one month later, only then will the check be deposited. In return, the borrower gets cash immediately. The fees for payday loans are extremely high: up to $17.50 for every $100 borrowed(1) , up to a maximum of $300. The interest rates for such transactions are staggering: 911% for a one-week loan; 456% for a two-week loan, 212% for a one-month loan.

Indian or not: These customers are still being Raped. Calling it some sanitized euphamism such as "Freely Participated Tribally Endorsed Financial Sodomy" won't change the fact...

 

[CycloWizard]

I'm presuming you're being sarcastic...

The interest rates these 'Payday Loan' folks charge are obscene:


445%: http://www.missourinet.com/2011/02/07/48742/



http://www.consumersunion.org/finance/paydayfact.htm




Indian or not: These customers are still being Raped. Calling it some sanitized euphamism such as "Freely Participated Tribally Endorsed Financial Sodomy" won't change the fact...

Are they hiding the interest rates or fees they're charging? If not, I don't see a problem. It's a high-risk loan that both parties enter into voluntarily.

 

[her209]

Are the contracts only enforceable on Native American lands?

 

[Patranus]

Its a fucking joke that the indians enjoy all of the protections offered by the United States but are then put into a special class of people with special privileges.

 

[CPA]

I'm presuming you're being sarcastic...

The interest rates these 'Payday Loan' folks charge are obscene:


445%: http://www.missourinet.com/2011/02/07/48742/



http://www.consumersunion.org/finance/paydayfact.htm




Indian or not: These customers are still being Raped. Calling it some sanitized euphamism such as "Freely Participated Tribally Endorsed Financial Sodomy" won't change the fact...

Hey, I got an idea, don't get a payday loan.

 

[Exterous]

Hey, I got an idea, don't get a payday loan.

Please. We all know that is not the American way. The American way is to sign up for something, not read the fine print, lose money, demand Government intervention to save yourself and the children

 

[her209]

Please. We all know that is not the American way. The American way is to sign up for something, not read the fine print, lose money, demand Government intervention to save yourself and the children

Isn't that what happened with MBS and CDOs?

 

[halik]

http://www.npr.org/2011/02/07/133557321/Tribal-Land-Helps-Payday-Lenders-Skirt-State-Laws



While I am not against payday lenders (payday advance / check holding), per se, this way of bypassing regulation is rather disappointing.

Poetic justice - native americans getting their money back from white people by charging them 200% APR...

 

[alphatarget1]

I'm presuming you're being sarcastic...

The interest rates these 'Payday Loan' folks charge are obscene:


445%: http://www.missourinet.com/2011/02/07/48742/



http://www.consumersunion.org/finance/paydayfact.htm




Indian or not: These customers are still being Raped. Calling it some sanitized euphamism such as "Freely Participated Tribally Endorsed Financial Sodomy" won't change the fact...

Are "fees" considered as interest?

I think the better thing to do is a massive outreach campaign which targets the public on exercising prudence when it comes to personal finance.

 

[alphatarget1]

Poetic justice - native americans getting their money back from white people by charging them 200% APR...

What about African Americans and Hispanics... lol

 

[alphatarget1]

Are they hiding the interest rates or fees they're charging? If not, I don't see a problem. It's a high-risk loan that both parties enter into voluntarily.

QFT. If one needs a payday loan, chances are their credit is crap.

Would YOU lend to somebody whose risk of defaulting is very high? I wouldn't.

 

[HumblePie]

Put in the law they are able to loan to other indian members at whatever rate the tribal nation decrees they are able to. But if they want to loan to none tribal members, they have to conform to US laws on lending. Problem solved.

 

[jhbball]

Its a fucking joke that the indians enjoy all of the protections offered by the United States but are then put into a special class of people with special privileges.

Oh, you mean like white males?

 

[JeffreyLebowski]

Poetic justice - native americans getting their money back from white people by charging them 200% APR...

Your racial bias rears it's ugly head.

The majority of "payday" loan recipients are minorities. Try again.

Personally, I think "Indian tribal land being soverign" is a joke. If they want to be soverign, then they shouldn't get any federal or state funds. Let them drink their Thunderbird and Old Crow to their hearts content. When it runs out and their money runs out maybe they will all get of their lazy asses and join the rest of the nation and do something productive.
Not a Native American Idian alive today was hearded up and put on a reservation. They self impose it and expect everyone else to foot their bill.
Screw them. It's harsh to say but all through out history weaker civilizations were conquered and assimilated or completely wiped out.

 

[JeffreyLebowski]

Oh, you mean like white males?

Typical liberal cry baby bullshit.

 

[her209]

Your racial bias rears it's ugly head.

The majority of "payday" loan recipients are minorities. Try again.

What do you mean by "minorities"? For example, Asians and Jews are minorities but I don't think a majority of them use "payday" loans.

 

[werepossum]

Please. We all know that is not the American way. The American way is to sign up for something, not read the fine print, lose money, demand Government intervention to save yourself and the children

Unfortunately this is quite true. Personally as long as the loan is transacted completely on tribal reservation lands I have no problems with it. If however the front end is outside of tribal lands, then they should have to conform to all existing laws just like anyone else, no matter where the loan is approved. And no non-tribal help in collecting either; can't garnish wages for a defaulted loan made outside our jurisdiction.

 

[her209]

Unfortunately this is quite true. Personally as long as the loan is transacted completely on tribal reservation lands I have no problems with it. If however the front end is outside of tribal lands, then they should have to conform to all existing laws just like anyone else, no matter where the loan is approved. And no non-tribal help in collecting either; can't garnish wages for a defaulted loan made outside our jurisdiction.

This is pretty much my feeling too. If they want to claim sovereignty and therefore laws crafted by the state do not apply to them, then they cannot ask the state to enforce contracts made on their lands.

 

[Kirby]

Payday loan offices and liquor stores are a match made in heaven.

 

[Darwin333]

Its a fucking joke that the indians enjoy all of the protections offered by the United States but are then put into a special class of people with special privileges.

We kinda did damn near wiping them off of the face of the earth and jack all their land. We ain't giving the land back so I don't really mind the few fringe benefits they get.

 

[manimal]

Payday loan offices and liquor stores are a match made in heaven.

Dont forget a bondsman on one side and a pawn shop on the other with a strip club out back.....





Payday loaners should be under the same scrutiny as regular banks....wtf does it being a payday loan vs a business or home loan matter...

 

[sportage]

Payday loans rates are not any more obnoxious than the fees banks charge for bounced checks. Whats the diff, getting hit for several $39 overdraft fees for checks under $5 bouncing, or getting a payday loan and depositing it to cover those checks?
Here in our state, the city council enacted laws on how many payday loan shops can go in. The city council head member just happens to sit on the board of a local bank. They acted against payday loan companies simply because loan companies were cutting in on the banks business. Kind of how the mob works, without the street blood bath.
Payday loans are not good, but banks and bank fees are not the consumers friend either. Kind of like credit card companies constant raising ones credit limit, until all that a person can afford is to pay the monthly minimum payment. Exactly where the credit card companies want you. It's all a game and in every case, payday loans or bank fees or credit card games, the consumer suffers.
Why do you think so many families live paycheck to paycheck?

There are times when the average person or family needs extra money. Car repairs bills, household repair bills, or medical bills because one of the kids broke a leg or arm.
But naturally, no one would ever want decent national healthcare coverage for such emergencies. Its better to bounce a check or run to a payday loan store, that is after the credit cards are maxed out. This is also known as the American middleclass financial system.