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The ongoing future of Tribal Lending Beneath The Customer Financial Protection Bureau

The ongoing future of Tribal Lending Beneath The Customer Financial Protection Bureau

Hilary B. Miller

Some Indian tribes – specially impecunious tribes found remotely from population facilities, without adequate traffic to engage profitably in casino gambling – are finding much-needed income from customer financing on the internet.

In an average model, the tribe kinds a tribal financing entity (TLE) that is financed by a 3rd party. The TLE then makes loans on the internet to consumers nationwide, often on terms which can be illegal beneath the internal rules of this states in which the borrowers live. The TLE benefits from the tribe’s sovereign immunity because the TLE is deemed an “arm” of the tribe.