“Today might mark the end of Financial Literacy Month, but NALA believes that financial education should be a life-long activity. That is why we are announcing the launch of this financial education campaign,” said Senator Jonathan Windy Boy, an advisor to the Native American Lending Alliance. “During these tough economic times people are, more than ever, in need of being financially knowledgeable and this program will help Native American communities get closer to reaching that level of financial savvy. Given that many reservations have 70-80% unemployment, it is essential that programs like this are provided to those most in need.”

“This partnership is a great example of how the public and private sectors can work together to improve the educational opportunities for communities most in need. We are excited about bringing an innovative solution that will create more informed and better prepared financial citizens,” said EverFi Executive Vice President Ray Martinez.

The financial literacy program aims to teach, assess and certify participating students in hundreds of different financial topics. With this initiative, NALA and EverFi aim to provide comprehensive financial education while establishing a “High Standard” that will have lasting social benefits in the Native American Community. The program will launch in three schools located in Montana, Louisiana, and North Dakota and expand into other schools and states in the coming months.

NALA will collaborate with EverFi on a program that will educate and certify participating tribal community members on financial literacy. The EverFi Financial Literacy Platform will also leverage and expand the impact of the initiative with the use of other resources including national foundations and state grants. EverFi and NALA continue to seek other sponsors to take part in the program to create more informed financial citizens.

About The Native American Lending Alliance (NALA)
The Native American Lending Alliance (NALA) formed in 2011 to protect Native American sovereign rights and enable responsible financial alternatives designed to meet the consumer needs with transparency, value and convenience. NALA protects consumers’ rights with best practices that ensure these guiding principles are respected. Offering on-line financial services presents a tremendous opportunity for Native Americans to improve the welfare of their tribes. Through NALA unity is brought to a movement guaranteed to generate opportunities, jobs, and development on tribal lands as well as provide valuable and needed financial services.

About EverFi, Inc.
EverFi, Inc. is the leading education technology company to teach, assess, and certify students in critical skills. EverFi’s education learning platforms include Financial Literacy, Student Loan Management, Digital Literacy, Cyberbullying, Alcohol Abuse and Sexual Assault Awareness. EverFi has nine published studies documenting the efficacy of several of our education technology platforms. The company teams with major corporations and foundations to provide the programs at no cost to K-12 schools. Learn more at www.everfi.com.

For more information or to interview a member of NALA, please contact Dan Rene of Levick Strategic Communications at 202-973-1325 or drene@levick.com.

Just as the internet and e-commerce has revolutionized the global economy, this technological advancement could hold the key for reviving Indian Country. Online industries have the power to surmount the challenges of geography – connecting Native American industries to the entire nation, and even the world.

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Belcourt, North Dakota – The Native American Lenders Alliance (NALA), today released a sweeping set of new best practices for its members who offer financial services across the United States. The new best practices mandate strict disclosure requirements for consumers – going above and beyond the obligations of traditional banks.

The Native American Lending Alliance (NALA) formed in 2011 to protect Native American sovereign rights and enable tribes to offer responsible financial alternatives. The alliance is made up of the Chippewa Cree in Montana, Tunica Biloxi in Louisiana, Turtle Mountain Chippewa Cree in North Dakota and the Alturas Rancheria in California. Together they’ve developed the comprehensive best practices to protect consumers’ rights and following them is a requirement of NALA membership.

“As the headlines grimly remind us every day, many Americans have been taken advantage of by traditional banks with hidden fees,” said Merle St. Claire, NALA Board Chairman. “With this initiative NALA sets itself – and every one of our members – apart. These mandates for our member companies are more transparent and exceed the standards of banks regulated by the federal government.”

A recent Zogby poll indicated that two-thirds of U.S. adults (64%) agree that since 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. Additional findings indicated that an overwhelming majority (88%) supported tribal sovereignty rights for Native Americans.

The vast majority of customers of tribal lenders have been victims of hidden fees and costs charged by traditional banks and now seek a more transparent alternative. Last year 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 NALA members are stepping in to fill that need while providing clear guidance to consumers who seek installment loan products.

NALA’s best practices, which are available on its website, outline responsible practices to protect and inform consumers. The primary elements of the new guidelines state that tribal lenders must:

• Afford consumers protections like those in the Truth in Lending Act, the Military Lending Act, and the Equal Credit Opportunity Act in addition to other consumer protections.
• Operate as a legitimate “arm of the tribe,” owned by, operated by, and benefitting federally recognized sovereign nations.
• Constantly work with consumer advocates to provide the highest quality product to all Americans.
• Demonstrate the positive economic impact tribal lenders can have on sovereign nations through social giving, education, employment and increased opportunity.
• Promote financial literacy tools and resources for consumers and Native Americans when possible.

“NALA and its member companies strive to provide the highest quality products to consumers and seek to reinvest proceeds to benefit the tribes,” said Chairman St. Claire, a member of the Turtle Mountain Band of Chippewa Indians. “Clearly, we have learned from the lessons of the gaming industry, which is helping to guide the actions of NALA to help consumers and tribal members alike.”

About NALA

The Native American Lending Alliance (NALA) formed in 2011 to protect Native American sovereign rights and enable tribes to offer responsible financial alternatives. The alliance is made up of the Chippewa Cree in Montana, Tunica Biloxi in Louisiana, Turtle Mountain Chippewa Cree in North Dakota and the Alturas Rancheria in California. For more information, please visit our website at nativeamericanlending.org.

The sovereign-loan model is “exploding and will be the future lending model for payday-loan companies,” said Jer Ayler, president of Trihouse Enterprises Inc., a payday-loan consultant in Las Vegas. Just like the casino boom that began a few decades ago, payday loans are emerging as a great boon for economically struggling Native American communities.

More than 12 percent of the 300 companies making payday loans through the Internet are wholly owned by American Indian tribes, Frank Cotton, a payday-loan consultant in Atlanta, told The Wall Street Journal. Indian country’s business with online banks made about $420 million in payday loans in 2010, or about 12,500 loans a month, he estimates. Precise figures are hard to come by, as Native American businesses aren’t required to give details on their business operations. But there are at least seven federally recognized tribes that own payday lenders. These include the Chippewa Cree Tribe in Montana, which recently launched its Internet payday loan service Plain Green Loans.

Indian Country Today Media Network recently spoke with Montana State Senator Jonathan Windy Boy (D–Box Elder), Plain Green’s policy advisor, to shed some light on Plain Green and its membership in the Native American Lending Alliance (NALA).

What prompted you to get into the online lending business?

For tribes like ours, geography creates a number of barriers to promoting economic growth. E-commerce has provided our tribe with the ability to create innovative and profitable businesses, and we believe our product gives consumers real choice when it comes to emergency short-term loans. All NALA lenders operate as an arm of their tribe and are wholly owned by the tribe.

Senator Johnathan Windy Boy, Plain Green’s policy advisor, shares Plain Green's ethics. (Courtesy of Windy Boy)

Montana law prohibits interest rates above 36 percent, but your lending rates soar as high as 360 percent.

How do you ensure that the person securing a Plain Green loan is not a Montana resident and thereby avoid breaking state law?

NALA’s Best Practices ensure complete transparency of rates and fees, so there is always full disclosure of all terms and conditions to the consumer. Here are the facts. According to a 2009 Bretton Wood study, Fee Analysis of Band and Credit Union Non-Sufficient Funds and Overdraft Protection Programs, more than 20 million households pay an average of $1,500 a year in non-sufficient funds and overdraft fees. According to a 2008 Federal Deposit Insurance Corporation study, “a $27 overdraft fee that a customer repays in two weeks on a $20 debit purchase would incur an annual percentage rate of 3,520 percent,” The New York Times  reported. Our consumers know the facts and the real costs of their options. Plain Green does not lend within the state of Montana. We use all available information to underwrite unsecured loans and this includes the applicant’s address on the credit application.

How would you respond to critics who contend the payday lending industry victimizes low-income people?

Plain Green provides financial services to the underbanked. Some estimates indicate that 25 percent of the U.S. population falls into this category. The traditional banking system is failing many consumers with less-than-perfect credit history. Let’s ask the banks when was the last time they made an unsecured installment loan of $1,000 or less. You won’t see too many raise their hands. Plain Green also reports to credit bureaus which allows consumers to improve their credit score with positive payment history. In a recent survey, Plain Green asked its customers, “Why did you take out a loan with us?” We heard things like: “I’m paying off credit cards slowly but surely and doing well thanks to you guys cuz no one would help me—thanks.” Results of the survey will be published this month.

Do you use any profits to develop consumer-awareness programs?

NALA is working with other Native organizations to develop or use existing financial literacy programs, targeted specifically to Native Americans.

What programs does Plain Green have to invest in Indian country?

Plain Green invests 40 percent of its profits directly back into the Chippewa Cree Tribe. To date, we have provided scholarships, educational resources, funding for parks, and holiday meals for each member of the tribe. Tribal leaders are developing a long-term strategic plans for putting the revenue to the best use for our people. In a time of budget cuts from the federal government, the Chippewa Cree aren’t sitting idle. We’re providing economic opportunity and real hope for the future.

Overwhelming Majority Says Government Should Honor
Native American Treaties;

UTICA, NY – Only 13 percent of those surveyed think Americans need more government regulations, according to a recent IBOPE Zogby International survey. More than half of adults (55%) say that, in general, they feel the federal government already has too many regulations, while a quarter (25%) say there is just the right amount.

In the survey, an overwhelming majority (88%) agree that the U.S. Government should keep its word and honor Native American treaties it has made with the nation’s Indian tribes.

The survey of 1,000 adults in America, conducted Nov. 4 – 9, 2011, also finds that 51% agree that government regulation creates undue financial burdens on businesses run by Native American’s on sovereign tribal lands.

When asked about credit use and responsibility, respondents largely believe it should be the individual’s responsibility when it comes to the type of credit a person can and can use (80%), compared to just 12% that say it should be the government’s responsibility.

In the same survey, respondents made clear their agreement that individuals – and not federal or state regulators – should control their economic and financial choices. To that end, those surveyed were asked to state their level of agreement on a number of statements.

Nearly two-thirds of adults (64%) say they agree that since most banks do not offer short-term loans of less than $1,000 and overdraft fees can be extremely costly, alternative loans like installment or payday can provide a convenient option for those who need to access to a small amount of cash for emergencies, compared to just 28% who disagree. A quarter of adults (26%) say they strongly agree with the statement:

Since most banks do not offer short-term loans of less than $1,000 and overdraft fees can be extremely costly, alternative loans like installment or payday can provide a convenient option for those needing access to a small amount of cash for emergencies.

Strongly + Somewhat Agree 64%
Strongly + Somewhat Disagree 28
Not sure 8

A strong majority (69%) of adults agree that the government should not be in the business of telling adults who have bank accounts that they cannot get a payday loan if they feel that payday loans are the best option or them, while slightly more than a quarter (27%) disagree.

The government should not be in the business of telling adults who have bank accounts that they cannot get a payday loan if they feel that payday loans are the best option for them.

Strongly + Somewhat Agree 69%
Strongly + Somewhat Disagree 27
Not sure 4

A majority of adults (61%) say they agree that as many banks have tightened lending practices and raised prices for their products in the recent economic downturn, the government should not limit the options available for individuals seeking loans by imposing regulations on short-term lenders, but 31% disagree. Adults are more than twice as likely to say they strongly agree with the statement (33%) than they are to strongly disagree (13%).

As many banks have tightened lending practices and raised prices for their products in the recent economic downturn, the government should not limit the options available for individuals seeking loans by imposing regulations on short-term lenders.

Strongly + Somewhat Agree 61%
Strongly + Somewhat Disagree 31
Not sure 8

A strong majority of adults (70%) agree that the same standards should apply to short-term lending that the gaming industry receives as long as they self-regulate and treat customers fairly. Respondents are almost four times as likely to strongly agree with the statement (38%) than they are to strongly disagree (10%).

Like the gaming industry, sovereign nation tribes have the right to operate e-commerce businesses, so long as they self-regulate and treat customers fairly. Do you agree or disagree that the same standards should apply to short-term lending?

Strongly + Somewhat Agree 70%
Strongly + Somewhat Disagree 19
Not sure 11

IBOPE Zogby International was commissioned by the Native American Lending Alliance to conduct a telephone survey of adults from 11/4/11 to 11/9/11. The target sample is 1,000 interviews with approximately 21 questions asked. Samples are randomly drawn from telephone CDs of national listed sample. IBOPE Zogby International surveys employ sampling strategies in which selection probabilities are proportional to population size within area codes and exchanges. Up to six calls are made to reach a sampled phone number. Cooperation rates are calculated using one of AAPOR’s approved methodologies and are comparable to other professional public-opinion surveys conducted using similar sampling strategies. Weighting by region, age, race, party, education and gender are used to adjust for non-response. The margin of error is +/- 3.2 percentage points. Margins of error are higher in sub-groups. The MOE calculation is for sampling error only. Please note, for the purposes of this report, all numbers have been rounded to the nearest percent and thus may not sum to 100%.

ABOUT IBOPE Zogby International

IBOPE Zogby International is a non-partisan, premier global public opinion polling and market research firm that offers timely, accurate results and in-depth analysis and insights. IBOPE Zogby International works with issue experts in a vast array of fields including healthcare, technology, finance, insurance, energy, agriculture, public affairs, and media who offer insightful data analysis and exceptional service to clients in countries throughout the world. IBOPE Zogby International experts analyze data and work with clients to develop and implement new strategies, and offer customized and attractive solutions to challenges our clients face. IBOPE Zogby International was formed in January 2010 following the acquisition of Zogby International by IBOPE Inteligencia of Brazil, a subsidiary of IBOPE Group.

Please visit www.ibopezogby.com for more information on IBOPE Zogby International.

About IBOPE Group

IBOPE Group is a Brazilian multinational company specializing in media, market and opinion research with offices in the United States and 14 Latin American countries. Since its founding 68 years ago, it has been providing a wide range of information and studies on media, public opinion, voting patterns, consumption habits, branding and market behavior.

For more information on IBOPE Group, please visit www.IBOPE.com.

Washington, D.C. – In a poll released today, by IBOPE Zogby International, the vast majority of the U.S. public (88%) support sovereignty for Native American tribes. The survey, which measured overall public sentiment about financial services choices for Native Americans, found that 88% of respondents supported honoring longstanding treaties between the government and tribes – which prohibit federal regulations of financial services and gaming on Native American reservations.

“This poll shows that almost 9 out of 10 Americans support honoring the sovereignty of Indian Country, as established by treaties with the Federal government,” said Montana State Senator Jonathan Windy Boy, a member of the Chippewa-Cree Tribe. “Taken together with the universal support for Native American Sovereign rights from the U.S. Senate Banking Committee’s hearing last week – it is clear to NALA members that innovation in the financial services industry has a groundswell of support.” Senator Windy Boy is also a member of the newly formed Native American Lending Alliance (NALA).

On November 8th, the Senate Committee on Banking, Housing and Urban Affairs held a hearing: “Opportunities and Challenges for Economic Development in Indian Country,” which unequivocally supported Native American sovereign rights. Specifically, members of the Committee highlighted the rights of Native Peoples to engage in the financial services industry.

The Native American Lending Alliance was formed in 2011 to protect Native American sovereign rights and enable responsible financial alternatives designed to meet the consumer needs with transparency, value, and convenience. NALA protects consumers’ rights with best practices that ensure these guiding principles are respected. Offering on-line financial services presents a tremendous opportunity for Native Americans to improve the welfare of their tribes.
Forward looking tribes, including the Chippewa-Cree, are developing unique financial services for the un-banked and the under-banked throughout the U.S. According to data from the FDIC, approximately 9 million households in the nation are un-banked, and an even larger 21 million households are under-banked – meaning that nearly 25% of the population’s financial services needs are not being met by traditional banks.
“Financial independence is essential to maintaining the sovereignty of our people,” continued Senator Windy Boy. “Only through entrepreneurship and economic development will Native Americans prosper, grow and continue on the traditions of our ancestors.”

To a hammer, everything looks like a nail.

To the army of regulators in the Obama administration, every lender looks like a potential problem that could mushroom into an A.I.G. debacle. They have spread their regulatory tentacles under the auspices of Dodd-Frank legislation to virtually every nook and cranny of the banking world.

The sole enclaves of banking choice are Native American tribes endowed with sovereign powers pursuant to treaties or otherwise. They offer sovereign lending to the spiraling number of the unbanked or under-banked who have been priced out of services offered by traditional lenders because of heavy-handed and costly Obama regulation.

Sovereign lenders are not targets of Occupy Wall Street. Their unbanked or under-banked borrowers are not clamoring for sovereign lending regulation by the Consumer Financial Protection Bureau of the Federal Reserve, or state or local government.

The reason is self-evident. The vast array of financial regulation inaugurated by the Obama administration under the banner of consumer welfare has dried up lending and hiked costs to traditional bank depositors. With friends like regulators, you can afford no enemies. No consumer is forced to utilize a sovereign lender. It is a matter of informed choice based on all the alternative lending options. And sovereign lenders compete among themselves for patronage. There is no sovereign lender monopolist. As the proverbial wisdom of owlish farmers goes, “If it ain’t broke, don’t fix it.”

Like mercy, sovereign lending is twice-blessed. Borrowers’ needs for immediate funds are satisfied. And jobs and wealth are created for Native American tribes. Sovereign lending has the potential to create thousands of jobs, and generate millions in revenue annually for economically challenged Native Americans.

It would be a monumental understatement to assert that Native American tribes have been historically exploited by the federal, state, or local governments. Wounded Knee is exemplary. Indeed, treaties have been so frequently broken and fiduciary duties dishonored that Congress established the Indian Claims Commission Act of 1946 to make partial amends. The United States Supreme Court elaborated on a handful of the treaty violations in United States v. Sioux Nation of Indians, 448 U.S. 371 (1980).

Under existing federal law, the special sovereign status of Indian tribes under the United States Constitution denies federal, state, or local arms of government authority to regulate lending businesses domiciled on tribal lands. The Supreme Court has characterized Indian tribes as “domestic dependent nations” or “quasi-sovereign tribal entities.”

The status of the sovereign powers of Indian tribes, as interpreted by federal law, has been concisely summarized by Indian law maven Felix Cohen, in his Handbook of Federal Indian Law:

The whole course of judicial decision on the nature of Indian tribal powers is marked by adherence to three fundamental principles: An Indian tribe possesses, in the first instance, all the powers of any sovereign State. Conquest renders the tribe subject to the legislative power of the United States, and, in substance, terminates the external powers of sovereignty of the tribe, e.g., its power to enter into treaties with foreign nations, but does not by itself affect the internal sovereignty of the tribe, i.e., its powers of local self-government. These powers are subject to be qualified by treaties and by express legislation of Congress, but save as thus expressly qualified, full powers of internal sovereignty are vested in the Indian tribes and in their duly constituted organs of government.

The Indian Reorganization Act of 1934 was enacted to strengthen tribal self-government and to preserve tribal culture. When Congress intends to encroach on tribal autonomy, it does so explicitly, not by implication, as with the Indian Gaming Act of 1988. Congress, however, has shied from legislation that would regulate lending activities conducted from tribal lands, in part because of the value of trial and error in fashioning enlightened public policy. What Justice Louis D. Brandeis said in New State Ice Company v. Liebmann, 285 U.S. 262 (1932) about States serving as laboratories for public policy experimentation applies in spades to diverse and independent tribal sovereigns: “It is one of the happy incidents of the federal system that a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.”

There remains, however, a perfectly legal way for the Consumer Financial Protection Bureau or states to attack sovereign lending: issue or enact more consumer and business friendly lending rules to attract the current customers of sovereign lending, i.e., build a better mousetrap.

Source: http://www.huffingtonpost.com/bruce-fein/the-last-enclaves-of-bank_b_1067265.html