Category Archives: Finance

Why Does a Rich Chicago Law Firm Keep Suing Indian Tribes?

Why does a deep-pockets Chicago law firm keep targeting businesses run by Native American tribes?

In September, Daniel Edelman filed yet another lawsuit against a short-term, small-dollar lending business, this one owned by the Lac Courte Oreilles Band of Lake Superior Chippewa Indians. They are a small band, fewer than 8,000 members, and their land – mostly covered in lakes and forests – is in Wisconsin’s remote northwest corner.

Attorney Daniel Edelman

Thanks to their federal tribal status, tribes can run and self-regulate businesses that are traditionally regulated by state officials, so long as they comply with federal laws. For some tribes, that has meant building casinos. For the Lac Court Oreilles and many other tribes, financial businesses like lending, which can be conducted online, are a better fit.

But now the Lac Courte Oreilles are in court, dragged in by Daniel Edelman and his law firm, Edelman, Combs, Latturner & Goodwin. The lawsuit they filed in September is just the latest in a series targeting Native American tribes across the U.S. for years. Recent instances include suits against tribes in WisconsinCaliforniaIllinois, and Indiana.

The economic impact of their lawsuits, tribal advocates say, has been devastating.

“There is a common perception that all tribal governments and tribal nations are operating successful casinos and therefore doing just fine economically,” said Kate Spilde, chair of the Sycuan Institute on Tribal Gaming at San Diego State University. “Meanwhile, fewer than one-third of all tribes offer casino gaming, and many tribal gaming facilities are small, local properties that mainly provide jobs and entertainment. For these reasons, I am a huge proponent of tribal economic development online as a way for geographically remote tribes to participate in businesses beyond land-based opportunities.”

E-commerce activities are particularly attractive to tribes because the physical infrastructure for traditional commerce requires U.S. government leases, and their land is often quite out of the way. So, many tribes have branched into lending activities, where they are exempt from the rate caps that some state governments have placed on short-term, small-dollar loans.

Lending of that type is itself a tricky issue. While such lenders are often characterized as predatory, they are often lifesavers to the people who use them because they can’t access capital any other way. And there is a thriving short-term loan industry in America that tribes and their governments have a legitimate right to participate in, Spilde said.

“Under the Dodd-Frank Act, tribal governments have the legal right to offer and regulate financial services, and many of them now offer short-term installment loans and other financial products online,” Spilde noted. “When these tribal businesses are threatened by legal challenges, the impact on tribal economic and community development are immediate and profound since they affect employees and tribal programs that are dependent on that industry.”

Image credit: Marc Romanelli/Getty Images

Edelman’s firm makes no secret of the fact that it wants to drive Native American tribes out of the short-term lending business entirely.

In a post on their law blog, they brag about their litigation against the Cheyenne River Sioux tribe, another small group of 8,000 or so living on a massive reservation in rural South Dakota. “As should be expected by this time, payday lending in Indian country is creating bad law for tribal interests,” the post reads. “My initial recommendations to tribal leaders and counsel — shut down on-reservation-based payday lending operations operated privately immediately.”

Edelman’s argument is that the outside firms brought in to operate these financial businesses are merely using the tribes as fronts, collecting profits on high-interest rates tribes are allowed to charge that would be illegal under state regulations. Tribal advocates are insulted by what they see as a condescending view of Native Americans as unsophisticated and inept. They note many businesses hire outside experts and consultants, and arguing that American Indians do so out of incompetence or corruption borders on racism.

It’s also no secret that other financial players in the short-term loan business don’t like competing with tribal lenders. By suing the tribes, Edelman is advancing the interests of big financial corporations that collect profits from the industry.

And then there is the impact of Edelman’s actions on the local economies. Noting how vital tribal commerce is, Indian Country Today reporter Mark Trahant told NPR last year that tribes are themselves usually the largest employers in regions where they live.

“[A healthy tribal economy] just creates jobs that didn’t exist a decade ago,” Trahant said. “During the pandemic … a lot of the large tribal employers tried to keep people on as long as possible. Not everyone, of course, but in many cases, they tried to keep people working even when the casino operations were shut down, and I think that was really remarkable.”

If the federal government wants to end the short-term lending business, it has the power. And if the government is interested in being even-handed, it should apply to every business, including banks and credit unions, who also offer expensive credit in the form of overdrafts, not just those owned by Native American tribes.

“The fact is, short-term, small-dollar lending is an economic lifeline for many tribes, advancing tribal sovereignty, enabling economic development and better economic opportunity on reservations across the country,” said Steve Parker, a member of Montana’s Chippewa Cree Tribe and a fintech entrepreneur.

“You hurt tribal lending, you hurt American Indians.”

Note: This article originally appeared in InsideSources’ DC Journal: https://dcjournal.com/why-does-a-rich-chicago-law-firm-keep-suing-indian-tribes/

Jingle Bills: Mastering Holiday Budgeting for Stress-Free Celebrations

The holiday season is a time of joy, togetherness, and celebration. However, it can also be a season of financial stress, as expenses tend to soar during this time. But fear not! With the right budgeting strategies, you can enjoy a memorable holiday season without breaking the bank. In this article, we’ll explore some simple yet effective budgeting strategies for the holidays, ensuring you have a stress-free and joyful celebration.

1. Set a Realistic Budget

Before you start shopping for gifts, decorations, and festive feasts, it’s crucial to establish a realistic budget. Take a close look at your finances, including your income, savings, and monthly expenses. Allocate a specific amount of money to your holiday fund, ensuring it won’t jeopardize your financial stability in the coming months.

2. Create a Detailed Spending Plan

Once you’ve set your budget, create a comprehensive spending plan. Break down your holiday expenses into categories like gifts, decorations, food, and entertainment. Assign a specific budget for each category, which will help you stay on track and avoid impulse purchases.

3. Embrace DIY Decorations and Gifts

Homemade gifts and decorations not only add a personal touch to the holidays but can also save you a substantial amount of money. Get creative and make your own holiday cards, ornaments, and gifts. Pinterest and crafting websites are fantastic sources of inspiration.

4. Take Advantage of Sales and Discounts

Keep an eye out for holiday sales and discounts throughout the year. Black Friday and Cyber Monday offer significant savings on a wide range of items. By planning your purchases around these events, you can make your budget stretch further.

5. Consider a Secret Santa Gift Exchange

If you have a large family or group of friends, suggest a Secret Santa gift exchange. This way, each person only needs to buy one thoughtful gift, reducing the financial burden and ensuring everyone receives something meaningful.

6. Shop Early and Avoid Last-Minute Rush

Last-minute shopping often leads to overspending. Start your holiday shopping early to spread the cost and take advantage of better deals. Make a list of gifts and keep an eye out for sales year-round.

7. Use Cash or Prepaid Cards

To prevent overspending, consider using cash or prepaid cards for your holiday shopping. Set aside a specific amount of money for your holiday expenses, and once it’s gone, avoid dipping into your regular accounts.

8. Host Potluck Dinners or Virtual Parties

If hosting a holiday feast is part of your tradition, consider asking guests to bring a dish in a potluck-style gathering. Alternatively, with virtual parties becoming more popular, you can host a digital gathering, reducing the costs associated with food and decorations.

9. Opt for Thoughtful, Practical Gifts

When selecting gifts, focus on items that are both meaningful and practical. Consider gifts that the recipient will use regularly, ensuring your money is well spent.

10. Reflect on the True Spirit of the Season

Remember that the holidays are about spending time with loved ones and creating cherished memories. While gift-giving is part of the tradition, it’s essential to keep the focus on the joy of being together, rather than the material aspect.

Conclusion

Budgeting for the holidays can be a straightforward and stress-free process with the right strategies in place. By setting a realistic budget, creating a detailed spending plan, and embracing frugal options like DIY decorations and gifts, you can have a joyous holiday season without the financial headache. Make use of sales, consider a Secret Santa exchange, and shop early to maximize your savings. Don’t forget that the true spirit of the holidays lies in the moments you share with loved ones, so keep that in mind as you plan your celebrations. With these budgeting tips, you can navigate the holiday season with confidence and ease.