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CFPB Signals Renewed Enforcement of Tribal Lending

CFPB Signals Renewed Enforcement of Tribal Lending

In modern times, the CFPB has delivered various communications regarding its approach to regulating tribal lending. Beneath the bureau’s very first manager, Richard Cordray, the CFPB pursued an aggressive enforcement agenda that included tribal financing. After Acting Director Mulvaney took over, the CFPB’s 2018 five-year plan suggested that the CFPB had no intention of “pushing the envelope” by “trampling upon the liberties of y our citizens, or interfering with sovereignty or autonomy regarding the states or Indian tribes.” Now, a present choice by Director Kraninger signals a return to a far more aggressive posture towards tribal financing pertaining to enforcing federal customer economic regulations.

Background

On February 18, 2020, Director Kraninger issued an order denying the request of lending entities owned by the Habematolel Pomo of Upper Lake Indian Tribe setting apart particular CFPB investigative that is civil (CIDs). The CIDs under consideration had been granted 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 “petitioners”), searching for information regarding the petitioners’ so-called violation associated with customer Financial Protection Act (CFPA) “by collecting quantities that customers would not owe or by making false or misleading representations to customers when you look at the length of servicing loans and collecting debts.” The petitioners challenged the CIDs on five grounds – including sovereign resistance – which Director Kraninger rejected. Continue reading CFPB Signals Renewed Enforcement of Tribal Lending