CFPB Signals Renewed Enforcement of Tribal Lending
The CFPB has sent different messages regarding its approach to regulating tribal lending in recent years. Underneath the bureauвЂ™s first manager, 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 suggested that the CFPB had no intention of вЂњpushing the envelopeвЂќ by вЂњtrampling upon the liberties of y our residents, or interfering with sovereignty or autonomy regarding the states or Indian tribes.вЂќ Now, a present choice by Director Kraninger signals a come back to an even more aggressive position towards tribal financing linked to enforcing federal customer economic guidelines.
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 at issue 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), searching for information linked to the petitionersвЂ™ so-called violation for the customer Financial Protection Act (CFPA) вЂњby collecting quantities that customers would not owe or by simply making false or deceptive representations to customers within 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.