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CFPB Dismisses Suit Against Tribal Lenders

In a surprising turn of events, the CFPB on Thursday dismissed its ongoing litigation against Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc.  The Bureau’s case was predicated on a controversial theory that turned alleged violations of state law into alleged violations of the Dodd-Frank Act, and comes on the heels of the CFPB’s recent announcement that it intends to review processes and policies across the agency, including enforcement.  While the dismissal was without prejudice, this marks a significant event in the Mick Mulvaney-led CFPB, as it was the first such motion to dismiss ongoing litigation of which we are aware.  Whether this is an isolated event or the beginning of a series of similar dismissals remains to be seen.

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About this Author

Ethan (Eitan) Levisohn, Litigation attorney, Covington
Special Counsel

Eitan Levisohn's practice is focused on advising banks and financial services firms on enforcement matters before federal and state agencies, as well as providing regulatory counsel to firms evaluating current products and services or looking to offer new products and services and enter new markets. He also conducts industry trainings on cybersecurity and data protection issues and risks, particularly as they relate to consumer protection, including the use of the FFIEC Cybersecurity Assessment Tool. Mr. Levisohn has extensive experience investigating and litigating civil and criminal...