Native Americans Claim Obama Administration’s ‘Operation Choke Point’ Hurting Their Businesses

1/15/2015
F. PETER BROWN 

Program targets certain 'high risk' businesses.

The head of a Native American business group, the Native American Financial Services Association, recently told The Blaze that an Obama administration program is harming online businesses that are a key source of funds for tribal governments.

The administration program, Operation Choke Point, focuses on certain industries including guns, payday or short-term lenders, porn shops, casinos, coin dealers, check cashers, and debt collectors.

The program is run by the Department of Justice and the FDIC. It investigates how banks handle accounts with industries considered ‘high risk.’

Last month, President Obama said: “We’re going to keep promoting economic growth in Indian Country, because every young person deserves the chance to work and get ahead.”

Now, Lance Gumbs, executive director of the Native American Financial Services Association, claims that Obama has broken his pledge.

He told The Blaze: “(Operation Choke Point) is affecting online lending sites, which are a big source of business for tribal nations.”

Gumbs went on to say:

E-commerce is the great equalizer for tribes. Tribes are located in areas that don’t have access to any other economic development. This is a way to help pull tribes out of poverty.

Documents have revealed that some FDIC officials oppose payday lending on personal grounds. This comes from a report by the House Oversight and Government Reform Committee.

The apparent arbitrary nature of the choice prompted Republicans on the Senate Banking Committee to ask Attorney General Eric Holder to get rid of Operation Choke Point.

The letter read:

This list appears to have been created with no public input, no compliance guidance or metrics for private entities to follow, and with disregard for the legality of a merchant’s operation. Further, the list has been used as a pretext by DOJ to limit essential banking services for industries out of favor by this administration.

h/t: The Blaze

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