Several Native American tribal leaders who were looking to block a civil investigation into their online payday lending practices have been denied by the Consumer Financial Protection Bureau.
The CFPB, created under the 2010 Dodd-Frank Act, published both the denial and the original appeal by online lenders, Great Plains Lending, MobiLoans and Plain Green. The agency said it would proceed with its investigation and the cease-and-desist orders issued against each lender.
"Speaking about the three tribal lenders in the appeal who argued they needed more time and the agency's broad requests were too burdensome, Cordray said that is 'baseless and must be rejected,'" writes American Banker's Rachel Witkowski.
"In particular, the bureau has reason to believe that the lenders are making loans to non-Indians over the internet, and it seeks to investigate those lending practices for compliance with Federal consumer financial law," CFPB Director Richard Cordray said.
For the full piece see "CFPB Denies Tribal Payday Lenders' Appeal to Stop Investigation" (may require subscription).