Article X of this Act created the customer Financial Protection Bureau with plenary supervisory, enforcement and rulemaking authority with regards to payday lenders.
The Act doesn’t distinguish between tribal and non-tribal loan providers. TLEs, which can make loans to customers, autumn squarely in the concept of “covered people” underneath the Act. Tribes aren’t expressly exempted through the provisions regarding the Act if they perform consumer-lending functions.
The CFPB has asserted publicly so it has authority to modify tribal payday lending. Nonetheless, TLEs will argue that they certainly must not fall inside the ambit of this Act. Particularly, TLEs will argue, inter alia, that because Congress didn’t expressly add tribes inside the concept of “covered individual,” tribes is excluded (perhaps because their sovereignty should enable the tribes alone to ascertain whether as well as on just exactly just what terms tribes and their “arms” may provide to other people).