The Tunica Biloxi Tribe of Louisiana recently established a regulatory commission to oversee tribal consumer lending. Tribal officials said this first-ever commission is a response to those who consider payday lending predatory, although tribes have asserted their right as sovereign nations to offer it. The first commissioners are Terry Goddard, former mayor of Phoenix and Arizona attorney general; Brendan V. Johnson, former U.S. Attorney for the District of South Dakota; and Tracie L. Stevens, former chairwoman of the National Indian Gaming Commission.
Attorney Charles W. Galbraith, a member of the Navajo tribe and advisor to the Tunica Biloxi Tribe of Louisiana, said the regulatory commission came about “because the tribe saw a need to ensure that its businesses were well regulated. Tribes certainly have a lot of expertise in regulating, from the gaming industry. We saw that as a model. The tribe saw that as a responsible governmental entity they needed to be regulating their lending business.”
Galbraith added the tribe owns a business called Mobile Loans, “which has a short-term installment loan product available online. But the tribe sees this as a growth industry. It’s constantly looking for new business opportunities to grow in this space. E-commerce is a big opportunity for tribes across the board.”
He noted while “a lot of people would call Mobile Loans a payday lender,” since it’s fee-based, establishing the commission ” is the tribal government recognizing that debate and that discussion and wanting to ensure the lending products they provide are in compliance with all tribal and federal laws and wanting to be good actors in this industry.”
