Some Indian tribes – especially impecunious tribes situated remotely from populace facilities, without adequate traffic to engage profitably in casino gambling – are finding much-needed income from customer financing online.
The tribe forms a tribal lending entity (TLE) that is financed by a third party in a typical model.
The TLE then makes loans on the internet to consumers nationwide, often on terms which are illegal under the interior rules associated with states where in actuality the borrowers live. The TLE benefits from the tribe’s sovereign immunity because the TLE is deemed an “arm” of the tribe. Because of this, the TLE might be sued only under not a lot of circumstances; and, maybe even more to the point, the TLE is exempt from state-court discovery that is most meant to uncover the economic relationship involving the TLE and its own non-tribal financier. Continue reading “The continuing future of Tribal Lending Beneath The Customer Financial Protection Bureau”
