The Future of Tribal Lending Under the Consumer Financial Protection Bureau

In Brief

• Indian tribes have found much-needed revenue from tribal lending entities (TLEs) financed by a (typically nontribal) third party and engaging in payday lending online.
• Because the TLE is deemed an “arm” of the tribe, the TLE benefits from sovereign immunity, a relatively bulletproof means to circumvent disparate state consumer protection laws.
• Nontribal money partners of the TLEs should consider that they almost certainly cannot assert tribal immunity as the battle over the authority of the CFPB to regulate tribal payday lending looms large.