Marc Benjamin in the Fresno Bee penned a rather informative piece on the pay day loan
tribe-sovereign nation model at:
The loan that is payday creates $52 billion all over the world every year, and Chukchansi officials hope to get an item of it. TheyвЂ™re perhaps not alone; around three dozen tribes come in the company throughout the united states of america, stated Allen Parker, A california consultant whom works together with tribes nationwide.
ItвЂ™s a business that is ideal for tribes in locations too remote to operate a gambling establishment successfully, or even for tribes whoever casino profits are down.
A Newport Beach consultant who runs payday loan storefront businesses and helps online installment VA tribes with online loan businesses although a tribe may need to hire a consultant or management group that takes a cut of profits and ensures the business is run properly, the overall costs can be lower because the tribe doesnвЂ™t have to follow state rules, said Jer Ayler.
That angers regular lenders that are payday need to conform to state legislation and limitations, he stated.
вЂњYouвЂ™d be angry from state licensing regulations and usury laws,вЂќ Ayler said if you spent millions of dollars on compliance and regulatory issues compared with a tribe that can enter with very little capital and utilize the sovereign model to exempt themselves.
But a l . a . County Superior Court judge stated tribes aren’t at the mercy of Ca certification guidelines due to sovereign immunity, stated Mark Leyes, a Corporations Department spokesman.
Sovereign resistance may provide protection in also federal court.
Three tribes and their loan company lovers had been sued in by the Federal Trade Commission after more than 7,500 consumer complaints over the last five years april.