Company Response
5/20/2024
5/20/2024
Dear Ms. Brister:
This responds to your recent complaint related to a loan from Makwa, LLC dba Makwa Finance (the "Company"), which is owned by the Lac du Flambeau Band of Lake Superior Chippewa Indians ("Tribe"). The Company takes these types of inquiries very seriously and would like to provide you with the below information. Nothing in this communication should be construed as a waiver of the Tribe's or the Company's sovereign immunity, all of which are expressly preserved.
The Company is a wholly-owned and operated subsidiary of LDF Holdings, LLC ("LDF Holdings"). LDF Holdings is a wholly-owned and operated subsidiary of the L.D.F. Business Development Corporation, which is a wholly-owned and operated economic arm and instrumentality of the Tribe. The Tribe is a federally recognized Indian tribe, organized under a Constitution pursuant to the Indian Reorganization Act of 1934, 48 Stat. 984, 25 U.S.C. §§ 476, et seq., as amended, and is identified on the United States Department of Interior's list of federally acknowledged Indian Tribes. 83 FR 34863-01 (July 23, 2018). The Company is an arm of the Tribe. As an arm of the Tribe, the Company possesses all of the privileges and immunities of the Tribe. The Tribe and the Company are entitled to tribal sovereign immunity and they are not subject to state law. Wells Fargo Bank, N.A. v. Lake of the Torches Econ. Dev. Corp., 677 F. Supp. 2d 1056, 1061 (W.D. Wis. 2010) (holding that entities acting as arms of a tribe are entitled to tribal sovereign immunity).
The Company issues loans in accordance with the Tribe's Tribal Consumer Financial Services Regulatory Code and it is licensed under Tribal law. Your loan agreement provided that it would be governed by the laws of the Tribe, without regard to the laws of any state. The interest and fees applicable to the loan are permitted by Tribal law. They were accurately and clearly reflected in the loan agreement that you signed before receiving the loan. You also received a TILA disclosure that outlined the amount and date of each payment required under the loan agreement. Due to its immunity, the loan is not subject to state law and the Company is not required to be licensed with any state. Your loan is legal.
As a courtesy to you, Ms. Brister, we will consider all payments made to date and close the account without any further obligation.
If you, Ms. Brister, have any questions, contact Customer Service at 1-855-853-4392.
The Company trusts that you will find this letter of explanation satisfactory. However, if you are not satisfied with the Company's resolution of this matter, pursuant to Section 10 of the Tribal Consumer Financial Services Regulatory Ordinance, which can be found at https://www.ldftribe.com/uploads/files/Court-Ordinances/CHAP94-Tribal-Consumer-Financial-Services-Reulatory-Ordinance.pdf, you may pursue formal dispute resolution with the Tribal Consumer Financial Services Regulatory Authority ("Authority"). To do so, you must send a written request to the Authority at P.O. Box 25, Lac du Flambeau, Wisconsin 54538. The request must contain the information required by Section 10 of the Tribal Consumer Financial Services Regulatory Ordinance.
Kindest Regards,
____________________________
Racquel Bell
Compliance Manager
Makwa, LLC dba Makwa Finance
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