Categorized | alternatives, CFPB

Indian tribes win victory

Two tribes in the online payday lending business won in court.  From the story: 

“We hold that tribal sovereign immunity applies to state investigatory enforcement actions,” the Supreme Court said, adding that the trial court on remand must determine whether Cash Advance and Preferred Cash Loans “act as arms of the Miami Nation of Oklahoma and the Santee Sioux Nation, respectively” and are entitled to the tribes’ sovereign immunity from subpoena enforcement.

I think what this means is states cannot enforce their lending laws against the tribes, but the federal government can.  I guess they will be brought under the CFPB eventually.  It will be interesting to see if they fight that.

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