The Native American Lending Alliance (NALA) formed in 2011 to protect Native American sovereign rights and enable tribes to offer responsible financial alternatives for those excluded from traditional lending, as most banks do not offer short-term loans of less than $1,000 and overdraft fees can be extremely costly. Alternative loans like installment services can provide a convenient option for those who need to access small amounts of cash for emergencies.
Growing restrictions on payday loans have brought lenders and American Indian Businesses together to ensure the protection of an industry helping the middle-class make ends meet. The Native American Lending Alliance is dedicated to protecting consumers’ rights and Indian Country’s sovereign immunity.
The vast majority of tribal lender’s customers have been victims of hidden fees charged by traditional banks and now seek a more transparent alternative. In 2011 alone, banks charged consumers over $40 billion in overdraft fees at rates equal to over 3000% APR according to the FDIC. Consumers are demanding better, cheaper options and Native American Lending Alliance approved companies are stepping in to fill that need while following NALA’s best practices. The Native American Lending Alliance is providing clear guidance to consumers who seek installment loan products.