The CFPB recently filed a petition in U.S. District Court for the Central District of California seeking to enforce the civil investigative demands (CIDs) it issued in June 2012 to three tribally-affiliated payday lenders. A hearing on the petition has been scheduled for April 28.
In September 2013, the CFPB issued an order denying the lenders’ petition requesting that the CFPB set aside the CIDs. The order rejected the lenders’ argument that they were not subject to the CFPB’s CID authority because they are affiliated with, and “arms” of, Indian tribes. The order also directed the lenders to produce all responsive documents, items and information covered by the CIDs by October 17, 2013.
In its petition seeking to enforce the CIDs, the CFPB alleges that although it subsequently granted the request of the lenders’ counsel for an extension of the compliance deadline until October 24, 2013, the lenders have not complied with the CIDs.