Let’s consider what’s really going on here! Beyond the high-powered press release…
$2 Billion Payday Loan Internet Lender Charges Unleashed by New York Attorney
Scott Tucker Employing Tribe Sovereign Nation Payday Loan Licensing Model
Folks, as you read this, REMEMBER: “The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.”
“Defendants Scott Tucker & Timothy Muir exploited Over 4.5 Million Financially Struggling Americans Through Unlawful Scheme to Evade State Usury Laws.”
By: Jer Trihouse. While these assertions by the U.S. Attorneys Office and the FBI are “as serious as a heart attack,” it’s a certainty that the tribal lending model is alive and well. Organized and deployed PROPERLY, tribal owned internet lending enterprises are a legitmate path to serving the 65% of U.S. borrowers unable to scratch together $500 for an emergency car repair, prescription purchase, rent payment… and for building a revenue stream aiding federally recognized Native American Tribes an opportunity for economic survival. There are a plethora of stories and studies demonstrating the ability of these tribes to improve their ability to offer their members economic success, build schools and health care facilities, and create jobs therby reducing the rampant unemployment and alcoholism so pervasive among tribes.
The small dollar loan product, including single payment payday loans, signature loans, installment loans, line-of-credit loans, car title loans… continues to appeal to tens of millions of consumers throughout North America, China, Europe, South America…
Brave, creative entrepreneurs continue to enter the business of making loans available to the millions of consumers in need. Witness the 120+ Fintech startups launched from Silicon Valley and London during the past 12 months. And let’s not forget the multitude of AFS (Alternative Financial Service) providers who have offered value and service to borrowers since the 90’s! They continue to morph, pivot and evolve their products to better serve their clients and out fox their competition; of which there are MANY!
[If YOU are in need of competent guidance regarding your existing or de novo online or brick-n-mortar lending operation, and would like to explore tapping into my network of highly experienced and significant service providers and capital sources, reach out to Jer@TrihouseConsulting.com 702-208-6736.]
Now, on with the show…
Regarding this RICO indictment announced with GREAT FANFARE against Scott Tucker and Timothy Muir for “operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 700% on loans,” I THINK IT IS SIMPLY ANOTHER EXAMPLE OF THE FEDERAL GOVERNMENT ATTEMPTING TO SCARE THE LIVING DAYLIGHTS out of those of us who have identified a huge need – a tremendous consumer demand – for access to fast cash to meet their financial emergencies.
For those of us who have actually worked “in the trenches,” who have really been behind the counter serving consumers in genuine need of a short-term, immediate loan to solve a temporary financial emergency, we are in sympathy with our clients. We GET IT! Our customers for these financial products GET IT as well. It’s not as if the banks are handing out $200 – $1000+ to our demographic!
And enough from the crazies who say lenders want to make loans to folks who cannot pay us pack. RUBBISH! If my customer can’t pay me back, am I really stupid enough to reach into my pocket and loan her $300? How long will it be before I’m working at Starbucks with my PHD in social sciences?
So… Scott Tucker? Don’t be surprised to read – buried deep on page 26 of The Wall Street Journal – a concise, 30 word description of a settlement concluding our government’s attack on our financial services industry.
The Fed’s want to make a lot of NOISE! Yes, they’re front page Press Release suggests they are protecting American borrowers from “loan sharks” like the payday loan industry. Yes, they are attempting to cause fear among the remote sovereign tribes lacking gaming, energy and agricultural economic benefits.
BUT, the financial services industry, technology, and the entrepreneurial spirit continues to thrive and prosper. Tribal government and their members continue to search for solutions to serving their community’s needs for schools, employment, day care, health services… And consumers by the millions still need $500 bucks to fix the car.
Operation Choke Point, so-called consumer activists, and “big brother” will continue to attempt to “scare the bejesus” out of us with their highly publicized investigative pronouncements against our industry. This is simply an excersise in misdirection; it’s theatre! “Look over here at our latest consumer protection PR while we reach into your pocket, take your money and lend it to the banks for <1%.
Bottom line for lenders? Stay informed. Get your house in order. Spend a few $bucks in the areas where you know you have vulnerabilities. Jer Trihouse
Link to Indictment
Link to Tucker & Muir NPA