In modern times, the CFPB has delivered various communications regarding its approach to regulating tribal lending. Beneath the bureauвЂ™s very 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 citizens, or interfering with sovereignty or autonomy regarding the states or Indian tribes.вЂќ 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.
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 вЂњpetitionersвЂќ), searching for information regarding the petitionersвЂ™ so-called violation associated with customer Financial Protection Act (CFPA) вЂњby 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.вЂќ The petitioners challenged the CIDs on five grounds вЂ“ including sovereign resistance вЂ“ which Director Kraninger rejected.