A bill that aims to regulate the growing payday lending industry will hurt Indian Country, the Native American Financial Services Association said on Thursday.

S.3426, the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act, was introduced on Tuesday. The bill appears to place limits on tribal companies by requiring them to comply with state lending laws.

"This legislation demonstrates the complete lack of understanding and respect that should be afforded to tribal government entities, clearly provided for under Presidential Executive Order," said Barry Brandon, the executive director of NAFSA.

The bill appears to recognize that tribes have a right to pass their own financial and consumer protection laws. But NAFSA said it will force tribes to stop existing lending practices, resulting in a loss of jobs and economic development.

Sen. Jeff Merkley (D-Oregon), Sen. Tom Udall (D-New Mexico), and Sen. Dick Durbin (D-Illinois) are sponsoring the bill. No Republicans have signed onto it so far.

"It is unacceptable that financial predators are using the ‘Wild West’ of the Internet to strip wealth from working families,” Merkley said in a press release. “This abusive, predatory lending hits families hard, hurting the parents and the children. We must close the loopholes that have allowed companies to utilize practices already banned in many states.”

Get the Story:
Press Release: Native American Economic Future Under Siege; Democratic Senate Coalition Strikes At The Heart of Indian Country (NAFSA 7/26)

Related Stories:
Turtle Mountain Band launches payday lending business online (7/19)
Chukchansi Tribe is the latest to jump into payday loan industry (7/11)
Turtle Mountain Band is first customer of subprime data company (7/5)
Tribes unite for new organization to protect Internet businesses (6/27)
Report: Consumer agency isn't singling out tribal payday loans (06/05)
Opinion: Non-Indian cashes in on tribal payday loan businesses (5/18)
Figure in tribal payday loan battle accused in class action (04/11)
FTC files lawsuit against tribal-affiliated payday lending firms (4/2)
FTC accuses Indian payday loan company of unfair practices (03/07)
Tribes slam 'declaration of war' on online lending businesses (3/7)
Colorado lobbies Obama administration on tribal payday loans (3/6)
Judge issues amended ruling in tribal payday loan lawsuit (02/28)
Editorial: Consumers losing out in tribal payday loan battle (2/27)
Opinion: Tribal payday loan firms are a new online menace (2/27)
Opinion: Significant implications for payday loan decision (2/24)
Colorado authorities go after non-Indian in payday loan case (2/15)
Colorado judge backs immunity for tribes' payday loan firms (2/14)