DOJ Department of Justice Centers On Tribe Sovereign Nation Lending Model
Between attacks by the CFPB plus the Department of Justice, the tribe pay day loan lending model will be greatly scrutinized. When set-up correctly, and as soon as the tribe experiences a genuine beneficial desire for the lending enterprise, the “Sovereign Model” can certainly still sound right.
Additionally, let’s not forget the disruption that is latest brought on by Madden vs Midland while the old theme “rent-a-bank! I’ve written about any of it before therefore let’s have straight straight back on course utilizing the DOJ.
PS: My summary? Those of us having a “bricks-n-sticks” footprint can not only prevail profit that is BUT Whenever we “stick to your knitting. ” Our little dollar loan borrowers remain reluctant to plug almost all their personal information into a long website application and wait to listen to back from the call center employee for loan approval.
The attention of this tribal lending industry has dedicated to the buyer Financial Protection Bureau’s appearing role in managing short term loans from sovereign tribal countries, but a unique and much more powerful player has recently emerged that may may play a role in shaping future conversations: the U.S. Department of Justice. From JDSupra Read original below: “In recent months”
“The DOJ’s entrance into this arena ended up being led by the one and only the famed “Sheriff of Wall Street, ” Manhattan U.S. Attorney Preet Bharara. ”
“On Feb. 10, 2016, Bharara announced charges against Scott Tucker and peers for presumably running an unlawful $2 billion payday lending enterprise. Continue reading JDSupra-DOJ Takes On Tribal Lending: In The Indictments Legislation