In the last few years, the CFPB has delivered various communications regarding its approach to regulating tribal financing. Underneath 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 five-year plan suggested 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 decision that is recent Director Kraninger signals a come back to an even more aggressive position towards tribal financing linked to enforcing federal customer economic guidelines.

Background

Director Kraninger issued an purchase 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 under consideration had been granted 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”), looking for information linked to the petitioners’ so-called violation for the customer Financial Protection Act (CFPA) “by collecting quantities that customers failed to owe or by simply making false or deceptive 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.