The CFPB has sent different messages regarding its approach to regulating tribal lending in recent years. The CFPB pursued an aggressive enforcement agenda that included tribal lending under the bureauвЂ™s first director, Richard Cordray. 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 our residents, or interfering with sovereignty or autonomy associated with states or Indian tribes.вЂќ Now, a current choice by Director Kraninger signals a return to a far more aggressive posture towards tribal financing associated with enforcing federal consumer economic guidelines.
On February 18, 2020, Director Kraninger issued an order doubting 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 at issue 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 вЂњpetitionersвЂќ), seeking information linked to the petitionersвЂ™ so-called violation associated with the customer Financial Protection Act (CFPA) вЂњby collecting quantities that customers failed to owe or by simply making false or deceptive representations to customers into 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. (more…)