Native American tribal governments have established TLEs to further expand their business portfolios beyond traditional industries associated with tribal economies, such as gaming, payday lending, natural resources, and government contracting.
As arms of the tribe, tribal lending entities benefit from the tribes' sovereign immunity in relation to state-based consumer lending regulation; "as nations that predate the Constitution and the United States, tribal nations can generally operate in licensed environments independent of state regulation.
[5][citation needed] Some members of Congress have agreed, and in 2013, a letter signed by 31 congressmen and women opposed a federal crackdown on tribal lenders.
Because of this, online tribal lending has become a key economic tool for American Indian Tribes.
[8] In July 2020, the United States Court of Appeals for the Third Circuit found that the Otoe–Missouria Tribe of Indians payday lender could not compel arbitration to defeat a Racketeer Influenced and Corrupt Organizations Act lawsuit brought by borrowers because the choice of law clause in the loans had adopted only the tribe's own law.