The U.S. Supreme Court decision in Michigan v. Bay Mills Indian Community affirmed the principle of tribal sovereign immunity but not everyone agrees the case affects tribal-owned Internet lending companies.

Immediately after the ruling was handed down last month, the National Consumer Law Center sent out a press release that claimed the decision opens the door for states to take action against tribes that do business beyond reservation borders. That interpretation, however, is being questioned by an attorney who works in Indian law.

"The decision focuses on a gambling statute and the reach of the state to individuals off tribal property only," Andrew Sandler of BuckleySandler told The American Banker. "It is less than clear how this decision applies to online tribal-affiliated lending activities or related enforcement by the Consumer Financial Protection Bureau or state agencies."

In his dissent, Justice Clarence Thomas specifically referred to the Internet lending industry. He said non-Indian companies are using "tribal immunity as a shield for conduct of questionable legality."

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How a High Court Ruling on Tribal Powers May Impact Payday Lending (The American Banker 6/9)
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Supreme Court Decision:
Michigan v. Bay Mills Indian Community (May 27, 2014)

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Group claims Supreme Court ruling affects tribal payday lenders (05/30)