Regulatory, conformity, and litigation developments when you look at the monetary solutions industry
Home > CFPB > CFPB Signals Renewed Enforcement of Tribal Lending
In the past few years, the CFPB has delivered various communications regarding its approach to regulating tribal financing. Underneath the bureauвЂ™s very first director, Richard Cordray, the CFPB pursued an aggressive enforcement agenda that included tribal financing. After Acting Director Mulvaney took over, the CFPBвЂ™s 2018 five-year plan indicated that the CFPB had no intention of вЂњpushing the envelopeвЂќ by вЂњtrampling upon the liberties of our residents, or interfering with sovereignty or autonomy for the states or Indian tribes.вЂќ Now, a recent choice by Director Kraninger signals a return to an even more aggressive position towards tribal financing pertaining to enforcing federal consumer monetary rules.
On February 18, 2020, Director Kraninger issued a purchase doubting the request of lending entities owned because of the Habematolel Pomo of Upper Lake Indian Tribe to create apart particular CFPB civil investigative needs (CIDs). The CIDs under consideration had been given in October 2019 to Golden Valley Lending, Inc., Majestic Lake Financial, Inc., hill Summit Financial, Inc., Silver Cloud Financial, Inc., and Upper Lake Processing Services, Inc. (the вЂњpetitionersвЂќ), seeking information linked to the petitionersвЂ™ alleged violation of this customer Financial Protection Act (CFPA) вЂњby collecting amounts that customers would not owe or by simply making false or misleading representations to customers when you look at the length of servicing loans and collecting debts.вЂќ The petitioners challenged the CIDs on five grounds вЂ“ including sovereign resistance вЂ“ which Director Kraninger rejected.