Seleziona una pagina

Financial Solutions Perspectives .CFPB Signals Renewed Enforcement of Tribal Lending

Financial Solutions Perspectives .CFPB Signals Renewed Enforcement of Tribal Lending

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 bureau’s very first director, 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 indicated that the CFPB had no intention of “pushing the envelope” by “trampling upon the liberties of our residents, or interfering with sovereignty or autonomy for the states or Indian tribes.” 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.

Background

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 “petitioners”), seeking information linked to the petitioners’ alleged violation of this customer Financial Protection Act (CFPA) “by 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.” The petitioners challenged the CIDs on five grounds – including sovereign resistance – which Director Kraninger rejected. (altro…)