POLITICS/BUSINESS: Consumer Financial Protection Bureau, federal regulation, tribal lending?: "Federal regulator ratchets up effort to regulate tribal lenders, suing four in California" ....
***Consumer Financial Protection Bureau, federal regulation, tribal lending?
* Los Angeles Times: "Federal regulator ratchets up effort to regulate tribal lenders, suing four in California" - From the LAT:
The Consumer Financial Protection Bureau launched another salvo Thursday in its battle against the tribal lending industry, which has claimed it’s not subject to regulation by the agency. The federal regulator sued four online lenders affiliated with a Native American tribe in Northern California, alleging they violated federal consumer protection laws by making and collecting on loans with annual interest rates starting at 440% in at least 17 states.
In a lawsuit filed Thursday in U.S. District Court in Chicago, the bureau alleged that Golden Valley Lending, Silver Cloud Financial and two other lenders owned by the Habematolel Pomo of Upper Lake tribe violated usury laws in the states and thereby engaged in unfair, deceptive and abusive practices under federal law.
Since at least 2012, Golden Valley and Silver Cloud offered online loans of between $300 and $1,200 with annual interest rates ranging from 440% to 950%. The two other firms, Mountain Summit Financial and Majestic Lake Financial, began offering similar loans more recently, the bureau said in its release.
The case is the latest in a handful of moves by the CFPB and state regulators to rein in the tribal lending industry, which has grown in recent years as many states have tightened regulations on payday loans and similar types of small consumer loans ................