CFPB v. Great Plans Lending, LLC
- Summarized by Lars Fuller , BakerHostetler
- 9 years 4 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- No. 14-55900 (9th Circuit, Jan 20,2017) Published
- Tag(s):
-
- Ruling:
- In a non-bankruptcy case, the 9th Cir. affirmed the C.D. Cal. decision compelling Native American lending entities to comply with civil investigative demands issued by the Consumer Financial Protection Bureau. The panel held that the Consumer Financial Protection Act applied to tribal businesses, including the for-profit tribal lending companies. None of the exception to enforcement against Indian tribes applied. The for-profit entities were not entitled to tribal sovereign immunity, notwithstanding being created by the tribes.
- Procedural context:
- The Consumer Financial Protection Bureau filed suit against several for-profit lending entities created by Native American tribes seeking enforcement of its investigative functions. The US District Court issued an order to show cause to the lending entities to show cause why they should not comply with the investigative demands.
- Facts:
- Several Indian tribes created for-profit lending companies, and established regulatory frameworks for consumer lending by the entities. The federal Consumer Financial Protection Bureau issued civil investigative demands, seeking to review the structure, framework, and operations of the lending entities. The tribes directed the entities to refuse access, but offered to cooperate with the Bureau as co-regulators of consumer lending services. The Bureau rejected cooperative regulation, and the tribes petitioned the Bureau to set aside the investigative demands. The Bureau rejected the petition and filed suit in US District Court seeking enforcement of the investigative demands. The US District Court issued an order to show cause to the lending entities to show cause why they should not comply with the investigative demands.
- Judge(s):
- Fernandez, Rawlinson, Bea
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