ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
October 13, 2020
The Gateway For Payroll Data
IRS extends Economic Impact Payment deadline to November 21 to help non-filers
WASHINGTON — The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

The IRS urges people who don't typically file a tax return – and haven't received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.
Paving the Payments Future
NEBRASKA: Thomas Aiello: Proposed cap on lending would hurt Nebraska's low-income families
Too many policies with noble intentions end up hurting the very Americans they are supposed to be helping. For a prime example, look no further than the November ballot. Initiative 428 would place a government-imposed price control on the level of interest that lenders are allowed to charge borrowers on a short-term “payday” loan. This is an onerous rule that is more likely to decimate credit markets for Nebraskans in desperate need of a small, quick loan.

Initiative 428 prohibits lenders from charging an interest rate in excess of 36%, imposes new restrictions on fees, and limits the ability for lenders to advertise to customers. Small dollar lenders tend to help rather than hurt the people they serve. According to Pew Charitable Trusts, “69% used it to cover a recurring expense, such as utilities, credit card bills, rent or mortgage payments, or food; and 16% dealt with an unexpected expense, such as a car repair or emergency medical expense.” Small-dollar credit products help them deal with everyday household expenses and that unforeseen emergency that can happen to anyone from any income level.
Lending as a Service
Central banks are considering their own digital currencies – this is what they could look like
  • The Bank for International Settlements and seven central banks published a report laying out some key requirements for central bank digital currencies, or CBDCs.
  • They recommended that CBDCs compliment — but not replace — cash and other forms of legal tender, and that they don’t harm monetary and financial stability.
  • The report on CBDCs comes as various central banks around the world consider their own respective digital currencies.

UPDATE! Inform the public!
IRS extends Economic Impact Payment deadline to November 21 to help non-filers

WASHINGTON — The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

The IRS urges people who don't typically file a tax return – and haven't received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.
Bank of America enters the small-dollar loan fray
  • Bank of America next year will begin offering loans of up to $500 for a flat $5 fee to customers who have had checking accounts with the bank for more than a year, the Charlotte, North Carolina-based lender said Thursday.
  • The advance, which the bank calls Balance Assist, will be available in increments of $100, and can be paid back in three equal installments over 90 days.
  • The announcement comes more than four months after the Federal Reserve, Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency (OCC) and National Credit Union Administration (NCUA) issued principles meant to encourage more banks to issue small-dollar loans, perhaps to help consumers struggling during the coronavirus pandemic.

3 reasons stocks will probably rise no matter who wins the presidential election
Every election cycle I field the same inquiry from my clients: Don’t you think stocks will sell off if my candidate loses? My response is always the same: Don’t invest your politics.

Though most investors handicap the election on a daily basis, savvy investors should focus on long-term economic trends that are likely to continue no matter which party takes the White House, the kinds of shifts that will have a profound impact for years, even decades.

Here are three trends to consider:

Manufacturing is on the rise
Fed’s Kashkari warns that delaying stimulus will have ‘enormous consequences’
  • Minneapolis Fed President Neel Kashkari told CNBC that there would be “enormous consequences” if more fiscal stimulus isn’t approved.
  • “Whatever assistance can be provided to people who have lost their jobs is important,” he said.
  • President Donald Trump altered course after telling his negotiators Tuesday to shut down talks until after the election.

LendingClub exits peer-to-peer loan space
  • LendingClub, as of Dec. 31, is retiring the retail peer-to-peer (P2P) platform that allows consumers to invest in fractions of loans originated by the company, it said in a securities filing last week.
  • The move represents a pivot away from the 14-year-old company's original vision, as it prepares to become a bank holding company amid its $185 million February acquisition of Radius Bank.
  • Acquisitions have helped drive other P2P lending players from the space. Metro Bank, for example, in August announced it was acquiring RateSetter, a British P2P lender. Meanwhile, Goldman Sachs in May bought Folio Investments, which offered a secondary market where investors could buy and sell Notes. Folio discontinued that market in August.

When downsizing, don’t overlook the pawn shop
Orderliness is a blessing you leave your children. Which is how I wound up this week in a pawn shop.

For the record, I had never been in a pawn shop. I assumed they were for other people: gun traders, drug addicts, gamblers, those seeking bail money or who were otherwise down on their luck ― not that I haven’t run out of luck myself from time to time. But there I was, in my tailored blouse, good haircut and sensible pumps bargaining with a pawn broker as several closed-circuit cameras looked on.

Christine Gerardi got me into this. You may recall, a few months ago, I wrote about Gerardi, a jeweler who came to my home and helped me sort my jewelry. Besides giving me permission to let go of some dated costume pieces, Gerardi bought some gold jewelry I no longer wore for their melt value. (Huzzah!) During that one extended visit, she helped me downsize my jewelry stash by a third.

But, I had more to deal with. Specifically, I had two pairs of my mom’s good earrings that I would never wear, but that Gerardi thought too nice to sell for melt, and, oh, my former engagement ring. Ouch. All were, honestly, a little tough to part with.
The U.S. economy is at the mercy of COVID-19
New York Fed President John Williams says that the outlook for the economy depends on the spread of the coronavirus and people's behavior containing the spread—the latest Fed official to stress that the outlook for the economy remains highly uncertain at the mercy of the virus.

“This is not a standard recession and the economic future is inextricably tied to the spread of the virus, people’s behavior in containing that spread, and the development of vaccines and therapeutics,” Williams said.

Williams underscored the Fed’s new approach to policy – linking raising interest rates and other policy actions like buying bonds to economic outcomes on employment and inflation -- allows the Fed to respond to changes in the economy as they happen.
Bank of America to offer payday-style loans that cost just $5. Here’s how they work.
Bank of America will begin to offer small, short-term loans to cash-strapped customers, the Charlotte-based bank announced Thursday, a move that could upend the market for short-term loans.

The loans, called Balance Assist, will have a $500 limit, and will only be available to people who have had a checking account at the bank for at least a year. The roll-out will start in a handful of to-be-announced states by January 2021 before expanding to the rest of the country early next year.

The move makes Bank of America — with its tens of millions of customers — one of the biggest financial institutions to have a small-dollar consumer loan.
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092