SCOTUS Decision Disrupts Tribe Affiliated Payday Lenders

Consumerist
Thursday, May 29, 2014

A U.S. Supreme Court decision in a Native American tribe’s casino case could stop online payday lenders that attempt to circumvent state laws by claiming affiliation with Native American tribes. The Court decided the case of Michigan v. Bay Mills Indian Community in favor of the tribe, which argued that the state could not sue the tribe directly for its off-reservation gambling activities. But the Court took the opportunity to sanction other avenues for restricting illegal off-reservation activities, including filing lawsuits against individual tribal officials and employees. Consumer advocates are optimistic that the ruling will provide an unambiguous method for states to take legal action against the lenders.