CFPB Dispute with Tribe-Affiliated Lender Spills into Court


After denying a petition to set aside a civil investigative demand (see October 1, 2013 Alert), the CFPB, filed a petition in the United States District Court for the Central District of California to enforce its civil investigative demand against online payday lenders affiliated with Indian tribes. In its petition, the CFPB alleged that the lenders failed to comply with the civil investigative demand and requested that the court issue a show cause order and an order requiring the lenders to comply. The lenders filed their opposition arguing that the CFPB’s petition “barely mentions the key fact of [the] case” that the lenders were “arms of a sovereign Indian Tribe, vested with all attributes of tribal sovereignty.” The lenders continue to advance the argument that they are outside the CFPB’s jurisdiction because they are chartered under the laws of federally recognized Indian tribes (see October 2, 2012 Alert). Lenders affiliated with tribes have made similar arguments when facing oversight and enforcement action by regulators (see April 1, 2014 Alert).

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin Procter LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.