Impacts of Recent Litigation and Regulation on Sovereign Lending and Compliance Jennifer Weddle, Greenberg Traurig Jennifer Galloway, Jennifer Galloway, PA Thursday October 16; 1:30pm Legal Panel

Impact of Litigation and Regulation on Sovereign Lending and Compliance Overview: – Recent Case Law and Regulatory Update – Effects on TLEs – Effects on Service Providers – Importance of Compliance – Criminal Penalties for Noncompliance – Timelines Going Forward

Impact of Litigation and Regulation on Sovereign Lending and Compliance Recent Case Law and Regulatory Update – Bay Mills Case. What does it mean? – NY injunction appeal denial. What’s next? – Webb/AMG Cases. Effects on Arbitration clauses and FTC jurisdiction – Jackson v. Payday Financial Case – CFPB/ CIDs on appeal

Impact of Litigation and Regulation on Sovereign Lending and Compliance Effect on TLEs – Typical Tribal lending models – State Regulators – Federal Regulators – Bank Relationships – Make sure your house is in order

Impact of Litigation and Regulation on Sovereign Lending and Compliance Effect on Service Providers – Increase in consumer complaints citing Operation Chokepoint – Increase in Due Diligence efforts on vendors – New bad actors trying to get a piece of the consumer debt recovery – Banking Relationship harder to obtain and maintain. Assist the TLE in maintaining banking relationships.

Impact of Litigation and Regulation on Sovereign Lending and Compliance Importance of Compliance – Solid Compliance Management System is critical The Consumer Financial Protection Bureau (“CFPB”) has made clear, in its examination manual, bulletins, and orders, that it expects all lenders and service providers to establish and maintain effective compliance management system CFPB has both Supervisory and Investigative Authority CFPB Supervision and Examination Manual (Part II.A.), available at: examination-manual-v2.pdf examination-manual-v2.pdf Several Laws and Regulations listed and stresses a need for Oversight Policies to ensure Audit, Consumer Complaint Response, Training, Monitoring and Third Party Service Provider obligations are met

Impact of Litigation and Regulation on Sovereign Lending and Compliance Importance of Compliance (continued) – Increased regulatory scrutiny on vendor management and debt collection – Consumer complaints - Streamline ways to work with the Tribe and its Regulatory Authority so that consumer complaints are handled quickly – PR considerations – OLA Compliance University participation – OLA Accreditation Program

Impact of Litigation and Regulation on Sovereign Lending and Compliance Criminal Penalties for Noncompliance – Criminal Indictment- Carey Brown case – Grand jury efforts – State prosecutors attempting to criminalize their lending laws

Impact of Litigation and Regulation on Sovereign Lending and Compliance Timelines going forward – CFPB payday rule making process is expected to come out next spring – Still waiting on decision in CFPB CID matter – Watching the litigation – CFSA and PDLBA actions – Make sure your house is in order

Legal Disclaimer This presentation is provided with the understanding that the presenters are not rendering legal advice or services. Laws are constantly changing, and each federal law, state law, and regulation should be checked by legal counsel for the most current version. We make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the information contained in this presentation. Do not act upon this information without seeking the advice of an attorney. This outline is intended to be informational. It does not provide legal advice. Neither your attendance nor the presenters answering a specific audience member question creates an attorney-client relationship

Impact of Litigation and Regulation on Sovereign Lending and Compliance Questions? Jennifer H. Weddle Shareholder, Co-Chair, American Indian Law Practice Group Greenberg Traurig, LLP | th Street, Suite 2400 | Denver, Colorado Tel | Fax | Jennifer L. Galloway Consumer Financial Law Jennifer Galloway, PA 711 S Howard Ave, Suite 200, Tampa, FL Tel | Fax