March 5, 2020
AFSPA Partner


Credit and Debit Processing. Any Card. Any Way. Any Time

Supreme Court looks likely to weaken Consumer Financial Protection Bureau but leave it standing

  • The Supreme Court looked likely to weaken the Consumer Financial Protection Bureau, but leave it standing, as the justices heard oral arguments Tuesday in a major business regulation case.
  • The case concerned whether the regulatory agency established in the wake of the 2008 financial crisis was structured unconstitutionally.
  • The bureau has come under sustained legal attack from conservatives since it was established nearly 10 years ago after being envisioned by Elizabeth Warren

WASHINGTON - The Supreme Court looked likely to weaken the Consumer Financial Protection Bureau, but leave it standing, as the justices heard oral arguments Tuesday in a major business regulation case.

The case concerned whether the regulatory agency established in the wake of the 2008 financial crisis was structured unconstitutionally by giving too much power to its director.

Under the legislation that established the bureau, the head of the CFPB, who serves a five-year term, may only be removed by the president for "inefficiency, neglect of duty, or malfeasance in office." Read more at CNBC

AFSPA Partner


CFPB complaints about small-dollar loans consistently fell for 22 straight months.

Is the Consumer Financial Protection Bureau's structure constitutional? The U.S. Supreme Court will decide

The Consumer Financial Protection Bureau (CFPB) - a brainchild of Massachusetts Senator Elizabeth Warren after the Financial Crisis - will be in front of the U.S. Supreme Court over whether its leadership structure is constitutional.

The crux of the case is that there is only one, not multiple directors, leading the agency, and that that person can only be removed for cause. In other words, the president of the United States can only remove the director of the CFPB with a very strong justification.

The Trump administration is set to argue to the U.S. Supreme Court on March 3 that the Constitution gives the president power to fire the CFPB director at his or her own discretion. A ruling is expected by the end of June.

Legal experts think there's a strong chance that the Trump administration will achieves its aims in the case. Read more at YAHOO FINANCE


VIRGINIA: Virginia will crack down on high-interest loans, as new laws pass after failing for a decade

The General Assembly has voted to put an end to the triple-digit interest rate loans that have overwhelmed tens of thousands of Virginians over the past several years.

Both the House of Delegates and the state Senate have passed bills - the final version on Wednesday - that cap interest rates and fees on payday loans, car title loans and open end credit lines, including those Virginians arrange online.

The loans "trap some of our most vulnerable Virginians in a cycle of poverty with no way to get out," state Sen. Mamie Locke, D-Hampton, argued as she pushed the measures through. The issue has long been a priority of the Peninsula delegation.

The bills say loans that don't comply with Virginia law on rates, fees and terms and conditions can't be enforced here. Read more at PILOTONLINE


Debt among oldest Americans skyrockets 543% in two decades

Total debt for Americans over age 70 increased 543% from 1999 through 2019 - the largest percentage increase for any age group, according to the Federal Reserve Bank of New York.
Seniors have been "disproportionately harmed" by a deterioration in the country's "modest social safety net," according to a study.

Carrying debt in retirement isn't necessarily bad if people have the cash flow to pay their bills and still live comfortably, according to financial advisors.

Read more at CNBC


Need a Great Consumer Reporting Company? Microbilt Made the List!

The Consumer Financial Protection Bureau (CFPB) -- part of the United States government -- recently mentioned Microbilt as a consumer reporting company on its list of companies to contact for specific types of reporting. Specifically, Microbilt was listed for its ability to provide bill payment and credit information, along with employment, property records, bank account, and court judgments for sub-prime and low-income consumers. Name and address information for these consumers was also listed as available through the company, to businesses that provide rent-to-own and short-term retail, consumer, and auto financing.

Why CFPB Recognition Matters

The CFPB is responsible for protecting consumers when it comes to the financial sector. As such, the CFPB only provides information for companies that have been properly vetted and can be trusted with consumer information. It looks for fair treatment, quality data, safe and secure practices, and the ability to perform the job of consumer reporting to a high standard. Microbilt is proud to have made the list of consumer reporting companies that the CFPB trusts. Since its creation in 2010, the CFPB has been actively focused on curtailing abusive practices for debt collection and reforming mortgage lending.


Survey: More than half of consumers would try fintech over traditional banks

Sixty-four percent of consumers would consider buying or applying for financial products from a tech company instead of traditional banks and credit unions, according to a Harris Poll survey commissioned by the digital card services firm Ondot Systems. Eighty-one percent of American consumers ages 18 to 34 would prefer fintech companies over legacy banks and credit unions.

Seventy-two percent of Americans think tech companies such as Amazon, Google, Apple and Facebook entering the financial services sector would pose a significant threat to smaller banks and credit unions. However, 64% of Americans think technology companies entering the financial industry would encourage traditional financial firms to improve their financial products, the report also indicated.

Three-fourths of respondents think technology companies are not transparent about how they use consumers' personal data, and 74% of Americans think tech companies are more likely to sell consumers' personal financial information than traditional banks and credit unions, the survey also found.

Read more at BANKINGDIVE

Dreher Tomkies LLP
Timothy Li
Meet Timothy Li, Founder and CEO of Alchemy

Timothy Li is the Chief Executive Officer of Alchemy, a FinTech Infrastructure Company, helping FinTechs and Banks to launch financial products with ease. Timothy has over 15 years of Banking and Financial industry experience and has worked at JPMorgan Chase, LoanDepot, RealtyMogul. He also serves on multiple advisory boards include Rocketloans. Tim also recently joined the University of Southern California as a part-time faculty at the University of Southern California's School of Engineering.

The Alchemy team composes of FinTech, LegalTech, Lending Solutions and Analytics leaders with decades of experience building product and services. Our goal is to provide the best in class "Lending as a Service" solution to Banks, Financial Services and FinTech industry.



Fintech-Bank Partnerships Can Level the Financial Playing Field For Subprime Consumers

Last week the House Financial Services Committee held a hearing on fintech-bank partnerships. This hearing followed the introduction of a new California bill that went into effect on January 1st which limits the ability of the state's financial industry to provide short term loans to consumers in need of emergency financial services.

I've written about it at length over the last year but to summarize, California's AB539 caps installment loan between $2,500 and $10,000 at 36% in the hopes of "protecting" low-income loan consumers from paying exorbitant interest rates. In reality, the bill has done what other bills passed in the same legislative session have done: it has reduced financial options for people who need them most while severely undercutting a vital business-consumer relationship and driving some businesses and services out of state.
Read more at RED STATE


LoanPaymentPro Highlights
  • Multiple Exclusive Domestic Acquiring Banks and ODFI Banks
  • State-by-State License and FI Chartered Lenders supported
  • Brick and Mortar, Online Lenders, Marketplace Lenders
  • Installment, Line of Credit, Title Loans, Lease to Own, Marketplace etc...
  • 350+ Plus Active Merchant Lenders currently using LoanPaymentPro
  • Average Clients' Monthly Bankcard Processing Volume - $750K
  • Single source Bankcard, ACH, and RCC/Check21 processing platform


For Sale By Owner
      • San Diego area: 1 Payday Loan Store. Price: $20,000 TOTAL
      • 5 CENTRAL TEXAS LOCATIONS: Financial Services
      • TEXAS 15+: Payday, ATL and Installment Lender Operations
      • MICHIGAN: 20+ Location PDL Operation
      • CHICAGO area: Small Dollar Installment Lender


Is the Fed a pawn of the stock market?

The Federal Reserve's decision to lower the federal funds rate by 50 basis points on Tuesday is the latest indication that it is becoming an unwitting agent of the U.S. stock market.

Investors had been expecting the Fed to lower interest rates by that amount at the Federal Open Market Committee (FOMC) meeting on March 17-18 in response to heightened fears about the coronavirus outbreak. They were confident this would happen. The reason: They knew the Fed would not want to risk disappointing the markets and be blamed for a renewed stock market selloff.

The decision was made when the stock market began Tuesday by pulling back from a strong surge on Monday. It also occurred after President Trump renewed his criticisms of the Fed.
Read more at THE HILL


22% of Americans Are Putting Their Entire Financial Situation at Risk

It's no secret that Americans are stressed about money. Approximately 58% of U.S. adults say their finances control their entire life, which is resulting in sleepless nights, fatigue, and difficulty concentrating at work, a recent survey from Capital One and The Decision Lab found.

Although there are many reasons people may feel stressed about money, there's one mistake in particular that nearly a quarter of Americans are making -- and it can easily derail your entire financial future.

One of the best ways to protect your finances is to build a solid stash of savings in case you're faced with unexpected costs. However, around 22% of Americans say they have less than $200 in savings, according to a recent survey from J.D. Power, including money in bank accounts, retirement fund investments, and all other sources of cash.
Read more at NASDAQ


Alternative Financial Service Providers Association

315 Tuscarora St., Lewiston, NY 14092