Re: A response to your editorial on payday lending.

My name is Tim Ranney and I am the president of Clarity Services, a leading credit bureau in the non-prime credit services industry. I wanted to offer a few thoughts on your March 4 editorial on payday lending and the information you used from the Pew Research Center study that you referenced.

First off, let me say that I am not an opponent or proponent of payday lending or any other financial services industry segment. We are a credit bureau. Our job is to collect financial and credit transaction data on consumers, store it securely, and distribute it accurately and in accordance with regulations in the form of credit reports.

Your editorial as well as an article you printed a few days ago, relied on research from Pew Research. Pew based their results and conclusions on survey responses from about 450 consumers nationwide. To think that one can draw valid conclusions on a national population using such a limited population stretches logical boundaries. If you wanted to draw behavioral conclusions of a group of 1,000 high school students, do you think you could draw a good conclusion by talking to 4 of them? I leave it to you to answer that question for yourself.

Clarity processes more than half a million report requests per day for consumers seeking many different types of credit. We have data in our systems on about 35 million non-prime consumers. The data tells us a story significantly different than Pew’s results. Pew’s data says that the “typical” payday loan consumer has an income of about $30,000. Our research tells us the number is slightly over $50,000. Pew’s research says that only 49% of the population using payday loans are employed, and our research indicates the number is about 82%. Pew’s results are based on such limited data, yet all of the results they claim are skewed in a direction that perpetuates the view that the consumer is always a victim. The data we see leads us to different conclusions.

I do believe the industry, researchers, government regulators, and others are making a sincere effort to understand the issues faced by credit-challenged consumers and to find ways to promote alternatives that are workable for consumers as well as the financial services industry. The consumer is not served when researchers and New York Times reporters use questionable research and pre-conceived personal opinions in attempt to influence the dialogue.

Tim Ranney
President
Clarity Services
tranney@clarityservices.com
http://www.ClarityServices.com

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While people across the United States are feeling the impact, these cuts have not been particularly kind to those of us in the Indian community. Recent reports have detailed how they affect us disproportionally and will take a severe toll on our hospitals, law enforcement, schools, programs for the needy, and other areas of our day-to-day lives.

These cuts will not be easy for us, but like we have done for hundreds of years, we must find a new way to control our futures. We believe we may have found a model to move forward, and the Native American Financial Services Association (NAFSA) was created to advance that model.

Our reservations are often faced with harsh geographic isolation, but the internet has opened the world to us and provided real opportunities for economic advancement through e-commerce. These opportunities have shown tremendous promise since we’ve introduced them to our own tribes and those across the continent. For the first time in many of our lifetimes, our people are steadily – and happily – employed. They are feeling the personal value that comes with a regular paycheck. They are seeing the businesses we’re establishing reinvesting in our communities and increasing the quality of life.

As we explore these opportunities, especially those that have arisen through online lending and alternative financial products (NAFSA’s core constituency), we must have the freedom to pursue our destiny. If the government is going to sever the lifeline which has supported our people, they must be open to our efforts to achieve economic security on our own.

Make no mistake – we do not want our people to be poor. We do not want our communities to be dangerous or our children undereducated. We value self-sufficiency, as it has been the foundation of our culture for centuries. Most of all, as sovereign nations with a proud history of self-governance, we do not want to be federal dependents.

Our culture is and has always been about survival and determination – and that’s really at the core of the great American dream. We want to support ourselves. We want to be a part of that dream. We want the self-sufficiency to go hand in hand with our long history of self-governance. We have found a way to make those ideals a reality and it is giving us hope for our future.

It is our ultimate hope that, as Congress uses every manufactured crisis to blindly hack away at the programs that have supported us for years, they see the innovative economic models we are developing, understand the promise it is providing to our sovereign nations, and allow us to freely pursue a brighter future for our people. Only then will the promise of economic prosperity we’ve seen on the horizon be fully realized.

-Barry Brandon

Brandon is executive director of the Native American Financial Services Association (NAFSA)

Read the full post on The Hill.

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WASHINGTON, DC (March 27, 2013) – Following yesterday’s formal announcement that Sen. Tim Johnson will retire in 2014, the Native American Financial Services Association (NAFSA) recognized Sen. Johnson’s service to his country, especially on issues important to the Native American community. Sen. Johnson has served in Congress for more than 25 years, serving three terms in the U.S. Senate after five terms in the U.S. House of Representatives.

“With Senator Johnson’s retirement, Indian Country has lost a steadfast friend and a fierce advocate,” said Barry Brandon, Executive Director of NAFSA. “For more than a quarter century, Sen. Johnson has fought tirelessly to represent the interests of tribes in his home state of South Dakota and across the nation. His voice on our behalf will be sorely missed as the Senate continues to take action on issues which affect us.”

Through his positions on the Indian Affairs Committee, Appropriations Committee, and as Chairman of the Committee on Banking, Housing, and Urban Affairs, Sen. Johnson fought for projects and programs that provided better access to economic development, health care, housing, and education. Nine American Indian Tribes are located in South Dakota, including the Cheyenne River Sioux, Crow Creek Sioux, Flandreau Santee Sioux, Lower Brule Sioux, Oglala Sioux, Rosebud Sioux, Sisseton Wahpeton Oyate, Standing Rock Sioux, and Yankton Sioux.

As Chairman of the Senate Banking Committee, Sen. Johnson invited Housing and Urban Development Secretary Shaun Donovan  to South Dakota to witness the housing challenges in Indian Country and has held hearings about how federal agencies can work together to better solve the housing problems that plague Indian Country. He also was a cosponsor of the Native Culture, Language, and Access to Success in Schools (CLASS) Act, which emphasized culture in the Native education system.

Sen. Johnson is expected to serve the rest of his term before retiring after the 2014 election.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.  Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

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“We applaud efforts to crack down on unfair or misleading trade practices that defraud consumers and abuse consumer trust,” said Barry Brandon, Executive Director of NAFSA. “Every NAFSA member is expected to abide by a set of industry-leading best practices, ensuring that our members honor consumer rights, protect their privacy, treat them fairly, and always strive to offer innovative financial solutions.”

NAFSA’s best practices are comprised of lending and operational standards, which ensure that businesses operate as a legitimate “arm of the tribe,” owned by, operated by, and benefitting a federally-recognized sovereign nation. In addition, they require member tribes to follow the principles detailed in federal financial services laws to the extent that they are applicable and honor tribal sovereignty. Through these best practices, NAFSA has established itself as an industry leader, an example for others in the lending space to aspire to, and a safeguard against actions like those undertaken by AEC.

A full listing of NAFSA’s best practices is available at http://www.mynafsa.org/best-practices/.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.  Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

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WASHINGTON, DC (February 8, 2013) – Following President Obama’s announcement earlier this week that he would nominate Sally Jewell, President and CEO of REI, to succeed retiring Secretary Ken Salazar at the helm of the Department of Interior, The Native American Financial Services Association (NAFSA) issued the following statement:

“With so many Department of the Interior bureaus and agencies impacting daily life on Native American reservations, Sally Jewell is an outstanding choice to succeed Secretary Salazar,” said Barry Brandon, Executive Director of NAFSA. “She understands the value of our precious wilderness and how important it is to protect our public lands. It is our hope that she will use her new post as Interior Secretary to continually strengthen the unique government-to-government relationship that our tribes share with the federal government. We applaud her nomination and look forward to working with her.”

The Department of the Interior (DOI) is accountable for the administration and preservation of most federal land and natural resources, as well as the management of programs relating to Native Americans, Alaska Natives, and Native Hawaiians. Included within DOI is the Bureau of Indian Affairs, the oldest bureau in the Interior Department.

The Bureau of Indian Affairs provides services to approximately 1.9 million native peoples on reservations across the United States. Additionally, the bureau manages 55 million surface acres and 57 million acres of subsurface minerals held in trust by American Indians, Indian Tribes, and Alaska Natives. If confirmed by the Senate, Jewell will have immense jurisdiction around Native American life.

Jewell, a former oil company official and outdoor enthusiast, won the 2009 Rachel Carson award from the Audubon Society for work furthering environmental efforts. Jewell is vice chairwoman of the National Parks Conservation Association and additionally serves as a board member of the Mountains to Sound Greenway Trust; a linked network of green spaces, and historic towns recreational opportunities in Washington State.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.  Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

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WASHINGTON, DC (January 22, 2013) – Following President Obama’s second inauguration earlier this week, the Native American Financial Services Association (NAFSA) extends its warmest congratulations to the president and urges him to continue his administration’s policy of government-to-government consultation on issues which may impact tribal sovereignty. During President Obama’s first term, great advances were made on native issues and on behalf of all Native Americans.

“Throughout his first four years in office, President Obama has affirmed tribes’ undisputed rights of self-governance and self-determination,” said Barry Brandon, Executive Director of NAFSA. “President Obama has been a true champion for Indian country and NAFSA looks forward to a continued alliance with the president as he serves out his second term.”
During his second inaugural address, President Obama stated, “Together, we resolved that a great nation must care for the vulnerable, and protect its people from life’s worst hazards and misfortune. Through it all, we have never relinquished our skepticism of central authority, nor have we succumbed to the fiction that all society’s ills can be cured through government alone.”

President Obama’s first term in office saw extraordinary advancement of Native Americans’ key concerns as well as historic investments in Indian country. Among his many accomplishments on behalf of native populations is the 2009 American Recovery and Reinvestment Act, which included more than $3 billion in direct funding for Indian Country, spurring job creation in tribal communities and assisting the renovation of schools on reservations.
In partnership with tribal nations, NAFSA urges President Obama to continue making critical investments to health and education services, generating jobs, and strengthening tribal economies. Working with tribal leaders, NAFSA will closely monitor President Obama’s work on native issues and will contribute to the public dialogue as necessary and appropriate.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products. Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

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WASHINGTON, D.C. (December 20, 2012) – The Native American Financial Services Association (NAFSA) congratulates Sen. Maria Cantwell (D-Wash.), who has been appointed to serve as Chairman of the Senate Indian Affairs Committee. Cantwell will take over the gavel when the 113^th Congress convenes in January. She will be the first female chair of the committee.

“Sen. Cantwell’s selection is the right choice to follow the strong leadership of Sen. Daniel Akaka (D-HI.),” said Barry Brandon, Executive Director of NAFSA. “We welcome the new chair and look forward to working with her on the issues that are so important to our organization and our tribal nations.”

Cantwell’s involvement with the Native American community and dedication to Native American issues is longstanding. Tribal support was crucial to her initial election to the Senate in 2000. She has served on the committee throughout her Senate tenure.

Tim Johnson (D-S.D.), Jon Tester (D-Mont.), Tom Udall (D-N.M.), and Al Franken (D-Minn.) will return to the majority side of the committee, in addition to new members Sens. Mark Begich (D-Ark.) and Heidi Heitkamp (D-N.D.). Minority committee assignments have not yet been released.

A staunch advocate for Indian Country, Cantwell has spearheaded Senate efforts to provide tribal governments with enhanced economic opportunities. Cantwell has worked to pass important legislation to support Washington’s Indian Health System. Additionally, Cantwell was critical in the passage of legislation, which enabled coastal tribes to relocate to the safety of higher ground, away from dangerous flood zones. A guardian of tribal heritage, Cantwell works closely with Native Americans to solve issues regarding self-determination, education, health care, and environmental issues, including salmon restoration.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.  Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country. More information on NAFSA is available at www.mynafsa.org.

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WASHINGTON (December 18, 2012) – Today, upon hearing news of the passing of nine-term Hawaii Sen. Daniel Inouye, the Native American Financial Services Association (NAFSA) issued the following statement honoring his life:

“With a heavy heart, we thank Sen. Inouye for his contributions to Indian Country and deeply mourn his passing,” said Barry Brandon, Executive Director of NAFSA. “He was a vigilant advocate for the rights most important to our tribal communities and a giant in Indian country in many regards. Generations to come will look to Sen. Inouye as one of the great leaders of the Senate and one of the best friends that Indian country has ever seen.”

Since 1978, Inouye has been a member of the Senate Committee on Indian Affairs and an active participant on the issues most important to Indian country. He served as Chairman of the Committee from 1987-1994. Beginning in 1994, the senator served as vice-chairman until June 2001, when he once again assumed the Chairmanship. While a senior member of the Committee, he was a strong advocate for furthering the United States’ government-to-government relationship with the sovereign governments that represent America’s native communities.

In the 100^th Congress, under Inouye’s leadership, the Indian Affairs Committee held more hearings and reported more legislation to the full Senate than any other Senate committee. Under his steady leadership, landmark legislation was guided through the upper chamber, including the reauthorizations of the Indian Health Care Improvement Act, the Indian Self-Determination and Education Assistance Act, the Indian Education Act, the Native American Languages Act, and the Native American Programs Act. Additionally, he oversaw the enactment of the Indian Finance Act, the Indian Land Consolidation Act, the American Indian Trust Fund Management Reform Act, the National Museum of the American Indian Act, the Indian Gaming Regulatory Act, the Native American Graves Protection and Repatriation Act, the Native American Housing Assistance and Self-Determination Act, the Native Hawaiian Education Act, the Native Hawaiian Health Care Improvement Act, and scores of Indian water rights and land claims settlement laws.

Inouye was born on September 7, 1924, in Honolulu, Hawaii to Japanese immigrants. When Hawaii became a state in 1959, Inouye was elected to the House and was elected to the Senate three years later. Inouye will be proudly remembered as the man distinguishable for serving in the 442nd Regimental Combat Team, a segregated entity of Japanese Americans, during World War II. Inouye earned a total of sixteen medals, including the Distinguished Service Cross, the Bronze Star Medal and the Purple Heart.

About NAFSA
The Native American Financial Services Association (NAFSA) formed in 2012 to advocate for Native American sovereign rights and enable tribes to offer responsible online lending products.  Through the protection of consumer rights and sovereign immunity, NAFSA provides vital services to tribally operated lenders serving the under-banked with better short term financial services, furthering economic development opportunities in Indian Country.

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And it didn’t change a single thing about payday loan usage in Oregon. Just like Prohibition, demand for the product didn’t just vanish, but supply did. And just like Prohibition, people were forced to go to other sources for the product they wanted, and pay more for it. You cannot limit demand by limiting supply, and if you’ve watched five minutes of “Boardwalk Empire”, you’d know what I mean.

Unlike Prohibition, during which people didn’t really need to drink, you can only go so far in modern society without access to credit. Very few products lend themselves as well to a consumer making an informed choice as acquisition of credit. Like other staples (food, gas), people must have credit for some reason or another. Folks are going to be smart about where they get their food and gas, choosing options that make the most sense to them. They do the same thing for credit, because it’s also something they routinely need.

Read the full post.

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