How Exactly To “Rent-A-Tribe? ”
“Rent-a-tribe” setups frequently include two parties — a tiny (couple hundred user), but legitimately founded, indigenous American community and a non-native home loan company which in fact handles the complete economic the main deal. The model can be an enhance of a classic: “rent-a-bank. In certain ways” About 20 years ago — when lending that is short-term began showing up from the state level — a way employed by some loan providers to bypass state laws on payday would be to pass their loans via a nationally chartered bank these people were “partnered” with, thus exempting them from state banking laws.
The 2000s saw a wave of legislators and regulators catching on, and by 2010 the process had been more or less stamped out through a variety of legislative actions while“rent-a-bank” was popular in the late 90s. (more…)