Minto Money profits off desperate borrowers amid tribal division
- Minto Money has seen significant revenue growth, climbing from $2 million in 2020 to nearly $7 million in 2022.
- Some tribal members express outrage over the high costs of loans, which they believe exploit desperate borrowers.
- The controversy has divided the community, with calls for transparency and ethical practices in tribal lending.
In Alaska, the tribal lending operation known as Minto Money has sparked controversy within its community. It has reportedly generated significant revenue, increasing from $2 million in 2020 to nearly $7 million in 2022. However, this growth has come under scrutiny as many tribal members express concerns about ethical implications, particularly related to the high annual percentage rates, which can reach up to 700%. A lawsuit filed in November 2023 by five borrowers alleges that Jay McGraw, son of television personality Dr. Phil, has a financial stake in this operation, raising questions about the impact of the business on the local residents. Some members worry that despite the revenue boost, the profits stem from exploiting vulnerable borrowers, thereby fostering divided opinions within the tribe. A former tribal lending manager stated that the operation ranks among the top tribal lending businesses in the United States, hinting at the potential for continued disputes over the ethicality of such financial practices and the governance of tribal resources. Members have voiced their frustrations, questioning the fairness of profiting from individuals who are struggling financially, leading to calls for more transparency and responsible management of the business.