New York AG Goes For the Jugular on Tribal Lenders

The New York district attorney is going for the jugular on Native American lenders.  Now, they’re instructing 117 banks to prevent the flow of money through the ACH system.  Let’s face it the lending business starts and ends with the money.  You take this away and it cripples the targeted lenders.  The big questions now are:

  • Will the Federal Government step in and stop the NY District Attorney?
  • Does a state have the authority to prevent internet commerce?
  • Will the participating banks listen or fight?
  • What’s plan B?  Are there other methods are there for moving money in and out of consumer’s accounts?

In response to this action, NAFSA (Native American Financial Services Association) released the following statement in Reuters.

 

“The actions from the New York Department of Financial Services unfairly target Native American tribes and violate our rights as self-governing entities. We are disappointed that years of precedent set by the federal government are being thrown out the window by overzealous regulators looking to further oppress tribal nations and breach our sovereign rights.

“The claims made in the letter from the New York Department of Financial Services are inaccurate, untrue, and not rooted in fact or reality. The lending companies operated by our members are wholly-owned arms of our tribes, bringing significant economic development to our reservations. They are licensed and regulated by tribes according to our ability to self-regulate. In addition, NAFSA’s Best Practices provide yet another failsafe to protect consumers, ensure that lenders honor consumer rights, protect consumers’ privacy, treat them fairly, and constantly strive to offer innovative alternative financial products.

“We encourage all consumers to become informed about our industry-leading best practices, learn about our role in providing crucial services to unbanked and underbanked consumers, and continue to stand up for Native American sovereign rights.”

More information on the Native American Financial Services Association, including updates on this ongoing dispute, is available at www.mynafsa.org.

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