'A pimp in the family'

Tribes get into the payday lending game.

  • Payday loan offices are everywhere in New Mexico border towns like Gallup, with 46 small loan licenses.

    Andrew Cullen
  • Farmington, New Mexico has 55 payday loan licenses.

    Jonathan Thompson
  • Farmington, New Mexico has 55 payday loan licenses. Now, some tribes are moving to start their own online small loan operations.

    Jonathan Thompson
 

Mariah Tsosie* needed cash. She worked 32 hours per week for $11 an hour, but her ex-husband often failed to send child support, and Tsosie, who has three kids, fell behind on her bills. She lacked credit cards, and her friends and family were as strapped as she was.

But there were other options in Farmington, New Mexico, where she lived on the edge of the Navajo Nation: Dozens of modest storefronts emblazoned with colorful, beckoning signs – "FastBucks," "Quik Cash" or "Check 'N Go." These so-called "payday lenders" offer payday, short-term installment, car title or tax refund anticipation loans to tide folks over until their next paycheck.

Tsosie picked Cash Loans Now, where friendly staffers assured her that a $200 installment loan would cost her just a few dollars per day. A couple weeks later, she made the first of 25 biweekly payments of $90 each. Thanks to an annualized interest rate of 1,147 percent, about 100 times the average credit card rate, eventually she would have forked out $2,360 – nearly one-tenth of her yearly earnings – just for a tank of gas and some groceries.

Tsosie's plight is common, and so are her extreme loan terms. Finance regulations have deteriorated over the past three decades, and the small-loan industry thrives during tough economic times. Storefronts cluster in areas where traditional banks are few and the working poor are plentiful. And reservation border towns have become a gold mine: Farmington, with just 46,000 people, has 55 active small-loan licenses, outnumbering its fast-food joints; Gallup, New Mexico, has 46, about 40 times the national per capita concentration. Residents of Montana's Native counties took out refund anticipation loans – which target those who are eligible for low-income federal tax credits – at a rate three-and-a-half times that of non-Indian counties; in North Dakota, the ratio was 12:1. Nearly 60 percent of Native Americans use alternative financial services, including payday-type loans, compared to 38 percent of whites.

"Payday lending and pawn shops have established themselves as the primary financial services firms for most Native people," says Sarah Dewees of First Nations Development Institute, a nonprofit in Longmont, Colorado. Millions of dollars in exorbitant interest rates and fees are siphoned from Native Americans' pockets and reservation economic development efforts every year and converted to corporate profits.

It's the latest chapter in the story of the exploitation of Native Americans. There's a surprising plot twist, though: In recent years, some tribes have embraced online payday lending for economic development, just as others have turned to gaming, energy development or other businesses that often victimize tribal members. They've even used their status as sovereign nations to skirt state laws. But as the fight over online lending reaches the courts, some fear that using tribal sovereign immunity to defend the industry could backfire – that the tribes have mortgaged their future for the sake of quick cash.

High Country News Classifieds
  • TROUT UNLIMITED NORTH IDAHO FIELD COORDINATOR
    The field coordinator will work with TU members, other fishing organizations, community leaders, businesses and elected officials to build support for actions necessary to recover...
  • STEWARDSHIP COORDINATOR
    New Mexico Land Conservancy (Santa Fe, NM), Stewardship Coordinator - Seeking highly motivated individual with excellent interpersonal skills to coordinate stewardship activities and support conservation...
  • 40-ACRE LAMBORN MOUNTAIN RETREAT, PAONIA, CO
    One-of-a-kind gem borders public lands/West Elk Wilderness. Privacy, creek, spring, irrigation, access. $270,000. Info at https://hcne.ws/LambornMT or call 970-683-0588 or 970-261-5928.
  • RECRUITMENT & HIRING MANAGER WITH WRA
    Western Resource Advocates (WRA) is seeking a dynamic, organized, and creative person with great people skills to be our Recruitment & Hiring Manager to recruit...
  • CLEAN ENERGY ATTORNEY (NM) AND POLICY ASSOCIATE/ANALYST (AZ & NV)
    Western Resource Advocates (WRA) is looking for a variety of positions around the West with our Clean Energy Program. Currently we are hiring a Staff...
  • EXECUTIVE DIRECTOR, HAWKWATCH INTERNATIONAL
    We are seeking an experienced dynamic leader for a growing conservation organization; $65,000-75,000 salary plus benefits; job description and apply at hawkwatch.org/executivedirector
  • FRIENDS OF THE INYO IS HIRING FOR THE SUMMER OF 2019
    Friends of the Inyo is excited to post our seasonal job offerings for the summer of 2019! We are hiring Trail Ambassadors, Stewardship Crew Members,...
  • DONOR RELATIONS MANAGER
    This position is responsible for the identification and qualification of major and planned gift prospects and assists in cultivating and soliciting donors through meetings, trips,...
  • STREAMFLOW RESTORATION IMPLEMENTATION LEAD (ENVIRONMENTAL PLANNER 4)
    Keeping Washington Clean and Evergreen Protecting Washington State's environment for current and future generations is what we do every day at Ecology. We are a...
  • SENIOR STORMWATER ENGINEER (ENVIRONMENTAL ENGINEER 5)
    Keeping Washington Clean and Evergreen Our Water Quality Program is looking to hire a Senior Stormwater Engineer at our Headquarters building in Lacey, WA This...
  • EXECUTIVE DIRECTOR
    Do you enjoy rural living, wild places, family farms, challenging politics, and big conservation opportunities? Do you have leadership abilities, experience with rural land protection,...
  • MAJOR GIFT OFFICER
    University of Wyoming Foundation Haub School of ENR, Biodiversity Institute, Environmental/Natural Resource Programs https://uwyo.taleo.net/careersection/00_ex/jobdetail.ftl?job=19001001&tz=GMT-06:00
  • MONTANA LAND STEWARD
    The Montana Land Steward develops, manages, and advances conservation programs, plans, and methods related to TNC's property interest portfolio in Montana. For more information and...
  • RAISER'S EDGE DATABASE ADMINISTRATOR
    POSITION DESCRIPTION: RAISER'S EDGE DATABASE ADMINISTRATOR The Raiser's Edge Database Administrator ensures the integrity and effectiveness of the member/donor database by developing systems and processes...
  • DIRECTOR OF DEVELOPMENT
    We are hiring a Director of Development Full time, competitive pay and benefits. Location: Bozeman,MT Visit www.greateryellowstone.org/careers for details GYC is an equal opportunity employer
  • EXECUTIVE DIRECTOR, KANIKSU LAND TRUST
    Kaniksu Land Trust, a community-supported non-profit land trust serving north Idaho and northwest Montana, is in search of a new executive director. The ideal candidate...
  • 3 POSITIONS: ASSOCIATE DIRECTOR, DEVELOPMENT DIRECTOR, AND FOREST PROGRAMS ASSOCIATE
    Mountain Studies Inst (MSI) in Durango and Silverton, CO is hiring 3 staff: Please visit mountainstudies.org/careers for Assoc Director, Dev and Engagement Director, and Forest...
  • CENTER FOR COLLABORATIVE CONSERVATION DIRECTOR, COLORADO STATE UNIVERSITY
    The Center for Collaborative Conservation is hiring a full-time, permanent Director. Applications are due on March 31. Description can be found at http://jobs.colostate.edu/postings/65118 No phone...
  • CHIEF OPERATING OFFICER/DEPUTY DIRECTOR
    Friends of Cedar Mesa seeks a skilled non-profit leader to play a crucial role in protecting the greater Bears Ears landscape. Experience working with government...
  • LUNATEC HYDRATION SPRAY BOTTLE
    Clean off, cool off & drink. Multiple spray patterns. Better than you imagine. Try it.