A Wisconsin Tribe Built a Lending Empire Charging 600% Annual Rates to Borrowers
A Wisconsin Tribe Built a Lending Empire Charging 600% Annual Rates to Borrowers
The Lac du Flambeau tribe is at the center of a $1 billion class-action settlement that comes after years of fending off claims of predatory lending practices.
In bankruptcy filings and consumer complaints, thousands of people across the country make pleas for relief from high-interest loans with punishing annual rates that often exceed 600%.
Although they borrowed small sums online from a slew of businesses with catchy names — such as Loan at Last or Sky Trail Cash — their loans stemmed from the same massive operation owned by a small Native American tribe in a remote part of Wisconsin.
Over the past decade, the Lac du Flambeau Band of Lake Superior Chippewa Indians has grown to become a prominent player in the tribal lending industry, generating far-reaching impact and leaving a legacy of economic despair. A ProPublica analysis found companies owned by the LDF tribe showed up as a creditor in roughly 1 out of every 100 bankruptcy cases sampled nationwide.
That’s the highest frequency associated with any of the tribes doing business in this sector of the payday loan industry. And it translates to an estimated 4,800 bankruptcy cases, on average, per year.
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Alternative headline: Indigenous corporation takes a page from the Wall Street playbook to benefit tribe.
Alternative headline: Capitalist scum fuck over innocent people.
This is like cheering Thatcher for being a girlboss.
Look I get it, they deserve a win after what their entire civilization went through and is still going through a thanks to the government in particular and white people in general. That does not mean, however, that it justifies fucking over already poor people using exorbitantly high interest loans. John Oliver did an episode about these kinds of things once and they are so goddamn predatory it's disgusting.
Never said I agreed with it...
First nations group gets their pound of flesh; more at 11