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Group claims Supreme Court ruling affects tribal payday lenders





The National Consumer Law Center claims the U.S. Supreme Court decision in Michigan v. Bay Mills Indian Community affects the tribal payday lending industry.

By a 5-4 vote, the court refused to overturn its precedents regarding tribal sovereign immunity in a commercial setting. The center, however, claims the ruling opens the door for states to take action against tribal entities for conduct that allegedly violates state law.

"The game is up for payday lenders who attempt to cloak illegal conduct in tribal immunity,” Lauren Saunders, the center's associate director, said in a press release.

The center cited language in the majority opinion that said states possess "many other powers" over tribal activities that occur beyond reservation borders. A state, for example, could file suit against individual tribal officials in order to avoid a sovereign immunity claim by the tribe itself.

So far, however, states have not been all that successful in taking tribal-owned payday lenders to court. New York was able to reach a settlement with a payday lender that was owned by an individual tribal member.

On the other hand, the federal courts have held that tribal lenders cannot avoid scrutiny from federal agencies such as the Federal Trade Commission.

Get the Story:
SCOTUS Decision Proves States Have Power Over Payday Lenders Claiming Tribal Affiliation (The Consumerist 5/29)

Supreme Court Decision:
Michigan v. Bay Mills Indian Community (May 27, 2014)

Oral Arguments on the Indianz.Com SoundCloud:

Relevant Documents:
Oral Argument Transcript | Supreme Court Docket Sheet No. 12-515 | Supreme Court Order List

6th Circuit Decision:
Michigan v. Bay Mills Indian Community (August 15, 2012)

Related Stories:
Opinion: Congress unlikely to act on immunity after Bay Mills (5/29)
Tribes welcome ruling in Bay Mills off-reservation casino case (5/28)
SCOTUSBlog: A rare victory for tribal nations at Supreme Court (5/28)
Opinion: Indian Country can't declare victory after casino case (5/28)
Supreme Court backs Bay Mills in off-reservation gaming case (5/27)
Turtle Talk: Tribes dodge a major bullet in Supreme Court case (5/27)

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