FOR IMMEDIATE RELEASE
Native American Lenders Applaud Oprah Winfrey Network’s Lisa Ling for Highlighting Troubles in Indian Country
Washington, DC – Today, in response to a recent episode of Our America with Lisa Ling on the Oprah Winfrey Network (OWN), the Native American Financial Services Association (NAFSA) issued the below letter commending the show and network for highlighting the problems that plague reservations across the United States. NAFSA’s members include many tribes which have found a solution to these problems through online lending.
The full text of NAFSA’s letter is below:
An Open Letter from the Native American Financial Services Association to Lisa Ling and the Oprah Winfrey Network
Dear Ms. Ling and Ms. Winfrey:
We want to commend you on your recent episode of Our America with Lisa Ling, which highlighted the startling realities happening on the Pine Ridge Indian reservation and throughout much of Indian country. This Our America episode illustrated to the rest of America what those of us who are active tribal members know all too well – that life in Indian country is riddled with a host of problems. Furthermore, these problems put at risk our culture, which has existed on this continent for thousands of years.
Reservations today face very serious and systemic problems that can only be addressed through economic development and job creation. Faced with untenable unemployment rates and extreme poverty on our lands, many of us do not benefit from the revenue streams that some tribes enjoy. Harsh geographic challenges, severe underdevelopment and dwindling populations make traditional business models unsustainable for many tribes.
Luckily, we have found one model that works – e-commerce. Through e-commerce, we are able to provide new and sustainable pathways to economic prosperity for tribes across the nation. By enabling tribes to pursue these new initiatives, we provide jobs and incomes to those in Indian country that need it most.
If, for any reason, these exciting new initiatives were to be threatened, the result would perpetuate the unforgiving cycle of poverty many tribes are facing. Recently, several tribes banded together to form the Native American Financial Services Association (NAFSA) to address this issue and to ensure Native Americans are allowed to freely enjoy the economic independence which has evaded us for far too long. Through the protection of consumer rights and sovereign immunity, NAFSA allows tribal governments to serve the under-banked with better short-term financial services, furthering the economic development opportunities which have shown so much promise throughout Indian country.
Our efforts are already showing tremendous potential. Montana’s Rocky Boy reservation – home of the Chippewa Cree tribe – has benefited greatly from online financial services, providing hope for the reservation. We produced a short documentary on these efforts, which can be viewed at www.vimeo.com/nafsa. We hope you will take the time to see how we are proactively addressing the needs of our people.
We want to thank you again for highlighting this most troubling problem and for allowing us to shine a light on how it may be solved. We would welcome you on any of our reservations at any time to see how these problems are being addressed in a responsible manner.
Thank you again for your continued advocacy.
Sincerely,
Executive Director, Native American Financial Services Association
About NAFSA
The Native American
Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign
rights and enable tribes to offer responsible online lending products. Through the protection of
consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders
serving the underbanked with better short term financial services, furthering economic development
opportunities in Indian Country.
WASHINGTON, D.C., July 26, 2012 /PRNewswire-USNewswire/ — The Native American Financial Services Association (NAFSA) today sharply denounced a Democratically-led Senate bill that would result in the loss of billions of dollars of sorely-needed tribal revenue, drastically increase Native American unemployment in Oregon, South Dakota, North Dakota, Montana and New Mexico, and sadly curtail the long-standing relationship between Native Americans across the nation with Democratic law makers.
Earlier this week, Senators Jeff Merkley (D-OR), Tom Udall (D-NM), and Richard Durbin (D-IL) introduced legislation that directly targets Native Americans nationwide and would prohibit tribes from engaging in a wide array of Internet-based commerce.
“This legislation demonstrates the complete lack of understanding and respect that should be afforded to tribal government entities, clearly provided for under Presidential Executive Order. Restrictions like Merkley’s bill will stifle innovation and only further isolate tribes that have suffered from more than 250 years of oppression,” said Barry Brandon, Executive Director of NAFSA. “Internet Commerce provides a financial lifeline for tribes who struggle every day with overwhelming poverty and a lack of access to the financial opportunities afforded to other Americans. Just as gaming has promoted economic development, Internet Commerce will help tribes who are not able to engage in gaming and who have experienced significant losses in casino revenue.”
Native Americans have long been staunch supporters of the Democratic Party. For years, tribal leaders and members have sponsored Get Out The Vote (GOTV) campaigns and hosted fundraisers for Democratic candidates and incumbents across the country. Reliable estimates are that Native Americans vote 90 to 95 percent in favor of Democratic candidates.
“For our allies in Congress who have counted on the Native American vote for decades, it is alarming that these members would chose to build a virtual wall that would prohibit tribes from sharing in the 21st Century economy while favoring their own state businesses over Indian Country,” Brandon said. “Adding insult to injury, the Senators’ announcement of this action refers to Native American commerce only as ‘rogues,’ which is politically insensitive.”
NAFSA member tribes engage in internet commerce and online lending throughout the U.S. The organization has established a set of Best Practices which all member tribes follow. Additionally, tribal governments have established regulatory bodies, similar to those that effectively self-regulate the Indian gaming industry. NAFSA members, the Chippewa Cree Tribe in North central Montana has established a lending enterprise that now provides 50 percent of all revenues to the tribal economy and the Otoe-Missouria Tribe in Central Oklahoma employs more than 55 full-time employees as well as tribal members as part of their tribally owned internet commerce operations.
“If enacted, this policy will have a number of dire consequences for economies throughout Indian country,” said Katherine Spilde, a tribal government gaming expert at San Diego State University. “A powerfully destructive consequence of this legislation could be an absolute end on online gaming throughout Indian country.”
NAFSA encourages all tribal members and like-minded constituents to contact their respective members of Congress to express their concern about the abrogation of sovereign rights provided to Native American tribes under treaties with the United States.
About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and to provide institutional support for tribal governments that offer responsible online lending products. Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally-operated lenders serving the under-banked population with better short term financial services while at the same time furthering economic development opportunities in Indian Country.
Connect with NAFSA on Facebook
https://www.facebook.com/NativeAmericanFinancialServices
Less than one month after its formation, the Native American Financial Services Association (NAFSA) has approved and implemented a strict set of Best Practices that will protect both consumers as well as the tribal lenders’ sovereignty. Given their unique status as sovereign governments within the United States, it is incumbent on tribes to implement self-regulatory initiatives for many of their private business endeavors.
“Our heritage and traditions foster constructive dialogue and consensus building between our tribal leaders,” said Barry Brandon, Executive Director of NAFSA. “These regulations are too important to our members as well as our consumers, and could not wait for two years to be implemented. This is why self-regulation works in Indian country.”
The Best Practices that have been implemented for NAFSA are requirements that all members must meet in order to be certified by the organization. Each of the regulations has been drafted to ensure transparency, so that all consumers make informed decisions when choosing financial products. Additionally, these Practices are designed to preserve and protect the sovereignty of each member tribe. NAFSA’s Best Practices meet or exceed federal guidelines for businesses that offer similar financial services products. Over the coming weeks, NAFSA will be implementing compliance and enforcement mechanisms for each of these Best Practices.
NAFSA Best Practices are separated into two categories. The first set of regulations ensures consumer protections and transparency in lending. The second tier of standards addresses operational guidelines that will preserve the sovereignty and integrity of the financial services provider.
Recent evidence has shown that the American public both supports and demands the financial services products being offered by NAFSA members. Recent surveys indicated that nearly one-third of Americans are considered “underbanked” and are utilizing alternative financial products, due to lending restrictions by banks. Further, public opinion polls in the United States consistently show that over 90% of the public supports Native American sovereign rights.
“Consumers are tired of hidden fees and fine print, which generate billions of dollars for Wall Street banks each year,” said Bruce Sunchild, Chairman of both NAFSA and the Chippewa Cree Tribe. “As tribal leaders, we have created NAFSA’s Best Practices which mandate that all member organizations must be straightforward with the consumer.”
About NAFSAThe Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products. Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the underbanked with better short term financial services, furthering economic development opportunities in Indian Country.
SOURCE Native American Financial Services Association (NAFSA)
“In this time of unprecedented economic growth potential and increasing efforts to undermine tribal sovereign immunity, the formation of this group could not have come at a better time,” said Barry Brandon, Executive Director of NAFSA and member of Muscogee (Creek) Nation. “We are focused on protecting our sovereignty and continuing to improve the quality of life for our people who have spent far too long suffering in some of the most impoverished areas of the country.”
NAFSA was created through the merger of two existing groups, the Native American Lending Alliance (NALA) and the Native American Fair Commerce Coalition (NAFCC). Both groups have been active in the ongoing debate over Native Americans’ sovereign right to engage in innovative E-Commerce initiatives. The newly merged organization has implemented a system of self-regulation that ensures that all member tribes are following a set of best practices that protect the tribes’ sovereignty and provide consumers with the highest quality alternative financial service products.
Immediately after tribal leaders formally approved the merger of the two organizations, Bruce Sunchild, Chairman of the Chippewa-Cree Tribe of Rocky Boy, Montana was unanimously elected to serve as NAFSA Chairman. The rest of the organization’s Board is composed entirely of tribal leaders from across the country.
Two recent court decisions have uniformly supported sovereign immunity for tribes in the alternative financial services industry. In both California and Colorado, courts have upheld the rights of Native Americans to engage in E-Commerce without the interference of state and federal regulators. In addition to the support of over two centuries of legal precedent, the American public universally supports tribal sovereign rights. In several recent polls, including one conducted by Zogby last year, over 90% of the public supports tribal sovereign immunity and opposes government intrusion into industries in Indian Country.
Tribal nations throughout the country are being hit by the economic downturn much harder than the rest of the country. Some reservations are experiencing unemployment rates in excess of 70 – 80%. This unemployment rate and lack of economic development are compounding other problems throughout Indian Country. Declining access to health care, housing shortages, crime and substance abuse are all exacerbated by a lack of financial resources. Additionally, funding and support from the federal government has been decreasing each year due to the budget crisis in Washington, DC.
NAFSA is working to educate Native Peoples and elected officials around the nation about the economic development opportunities created through E-Commerce. For many remote tribes, conventional industries like construction or gaming are not possible. However, engaging in the delivery of alternative financial services products through the Internet has the potential to empower tribes and provide them with the means to improve economic conditions for their people.
“We have already seen tremendous success through existing e-commerce initiatives and we look forward to continuing our work to increase tribal independence and decrease reliance on the federal government,” Brandon, who has over 20 years of experience in American Indian law and policy, concluded.
NAFSA meets again as an organization next month in Washington, DC.
About NAFSA
The Native American Financial Services Association (NAFSA) formed
in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible
online lending products. Through the protection of consumer rights and sovereign immunity, NAFSA
provides vital services to tribally operated lenders serving the underbanked with better short term
financial services, furthering economic development opportunities in Indian Country.
Connect with NAFSA on Facebook
www.facebook.com/NativeAmericanFinancialServices
“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 [email protected].
January 30, 2012
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.
For Financial Services in Indian Country
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.”