CFPB Rejects Bid by Tribal Online Lenders to Block Probe

September 26, 2013
Bloomberg  
payday lending news

Three Native American online lenders, claiming that the Consumer Financial Protection Bureau has no authority over them, have lost their bid to terminate an investigation against them for possible abuses of consumers. Instead, the regulator gave the Chippewa-Cree tribe in Montana, the Tunica-Biloxi tribe of Louisiana, and Oklahoma's Otoe-Missouria tribe 21 days to submit details about their businesses: Plain Green Loans LLC, Mobiloans LLC, and Great Plains Lending LLC, respectively.

CFPB director Richard Cordray posted a document on the agency's Web site on Sept. 26 that effectively turned back a July 2012 bid from the tribes to stop a probe of whether they broke federal laws. "Every court of appeals to address the issue has agreed that Indian tribes, like individual states, do not enjoy immunity from suits by the federal government," Cordray wrote.










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