November 12, 2020
The Gateway For Payroll Data
Despite Earnings Plunge, Total Personal Income Up
Federal Assistance Boosts States’ Personal Income as Economy Falters
Total personal income skyrocketed in every state in the second quarter of 2020, driven by unprecedented support from the government to individuals and businesses facing historic economic distress caused by the COVID-19 pandemic. But the temporary federal assistance obscured the coronavirus’s blow to every state’s economy, as earnings—the bulk of personal income—plummeted.

The spike in government assistance was the main reason that the sum of residents’ personal income soared in every state in the second quarter of 2020, despite a record-setting drop in U.S. economic activity due to the pandemic. The surge in federal assistance more than offset record losses in earnings, which counts wages from work and extra compensation such as employer-sponsored health benefits, as well as business profits.
Paving the Payments Future
US consumer borrowing up $16.2 billion in September
WASHINGTON (AP) — U.S. consumers increased their borrowing in September, helped by the first gain in the category that covers credit cards in seven months.

The Federal Reserve reported that total borrowing rose by $16.2 billion in September, rebounding after a drop of $6.9 billion in August.

The increase included a $3.98 billion increase in credit card borrowing, the first rise since February. Credit card use had fallen for six straight months as households cut back on use of credit cards once the pandemic hit and millions of people lost their jobs.
Lending as a Service
Health Insurance a Key to Feeling Financially Secure, Study Finds
Health insurance coverage is “the benefit employees say contributes most to their feelings of financial security,” even more than retirement benefits, according to the inaugural “workplace wellness study” by the Employee Benefits Research Institute.

“Health insurance remains the benefit employees are most likely to consider when making employment decisions, followed by retirement savings plans, and these benefits play a critical role in employees’ feelings of financial security,” it said.

The study, done with the Greenwald Research firm, found that two of three workers feel stressed about their financial future, with nearly half “concerned with their household’s financial wellbeing, citing saving for retirement and having savings in case of an emergency as top sources of financial stress.”
The deadline to register is Nov 21st

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 worst year for education jobs since 2000
State and local education employment is down 8.8% in October compared with 2019. That's education's lowest national jobs total in 20 years, according to an analysis out Tuesday from Pew Charitable Trusts.

Why it matters: With school closures, temporary layoffs and positions left unfilled in the new school year, the education workforce has been one of the hardest hit amid the pandemic.

The big picture: In addition to teachers, non-instructional positions like bus drivers, food service personnel and other support staff bore the brunt of the losses as schools shifted to distance learning.
Ed D'Alessio, Executive Director at INFiN, a Financial Services Alliance, issued the following statement explaining the consequences of Initiative 428 for Nebraska consumers:
“Regulated short-term, small-dollar lending that balances consumer protections with reliable access to credit is in the best interest of consumers. The 36 percent Annual Percentage Rate (APR) cap passed by ballot initiative in Nebraska this election is not about preserving access, enhancing consumer protection, or adopting reasonable reform. Rather, it amounts to eliminating regulated small-dollar credit in the state while doing nothing to meet Nebraskans’ very real financial needs, including amid the COVID-19 pandemic and economic downturn.

“Often those who call for the effective elimination of small-dollar loans have never needed one. This measure dismissed the needs and rationale of hardworking consumers, who choose and value small-dollar loans because they are reliable, transparent and cost-effective. With a rate cap under which no regulated lender can operate, Nebraskans soon will have little choice but to face the costs and consequences of missing payments for urgent financial obligations or turning to more expensive, riskier, less regulated options.”
Bank executives, trade groups react to Biden-Harris victory
Several bank and credit union trade groups, as well as top bank executives, not waiting on a Trump concession, have released statements and congratulatory posts on the highly contested 2020 election.

Media outlets called the 2020 presidential race for former Vice President Joe Biden on Saturday, following a close election that involved four days of vote-counting.

Incumbent President Donald Trump has yet to concede the race, challenging the results in some states and alleging unproven voter fraud.

Several bank and credit union trade groups, as well as top bank executives, however, not waiting on a Trump concession, have released statements and congratulatory posts on the highly contested 2020 election.
Top 5 financial regulatory priorities for the Biden administration
The most consequential choices new presidents make are what issues to prioritize and what people will comprise their team. The first 100 days contain the same number of hours for all presidents, regardless of how troubled the situation they inherit. President elect-Biden’s arrives in the midst of a multitude of crises – economic, social, and physical – each of which cries out for a lengthy list of new policies. The new administration’s priorities for financial regulation need to be considered within this competition for presidential and Congressional time and attention. Depending on the outcome of Georgia’s runoff races, President-elect Biden may arrive in office with a Senate held by the opposing party – the first newly-elected president to see that scenario in over forty years. For financial regulation, he will need to prioritize a regulatory agenda over a legislative one. Here are the five top financial regulation actions that President-elect Biden and his team should prioritize.
CFPB data shows consumers “struggling to pay” during the pandemic
Data from the Consumer Financial Protection Bureau (CFPB) can shed some light on just which financial issues consumers have been most affected by during the pandemic, offering clues on what kinds of help American need to get through the coming months.

It’s no secret that many consumers are facing deep financial distress during the COVID-19 pandemic. Through September, only about half of the people who lost their jobs early in the pandemic had gone back to work. The $600 a week federal unemployment boost ended months ago. And critical policies like limits on debt collection and repossession have only been offered at the state level, leaving millions unprotected.

Data from the Consumer Financial Protection Bureau (CFPB) can shed some light on just which financial issues consumers have been most affected by during the pandemic, offering clues on what kinds of help American need to get through the coming months.
Why fewer borrowers are repaying student loans during coronavirus
Just 11% of borrowers are currently repaying federal student loans during coronavirus, according to an analysis by Mark Kantrowitz, a student loan expert, and publisher of Saving For College.

Borrowers have paused payments for many reasons and, in some cases, it's the right course of action. But not every type of student loan is eligible for automatic forbearance, and there are both pros and cons to consider before discontinuing student loan payments.

Millions of borrowers with federal student loans have stopped paying those loans during coronavirus for one simple reason: They are no longer obligated to do so. As part of its coronavirus relief efforts, the federal government has put all federal student loans into administrative forbearance until December 31.
Baby Boomers and high earners now carry the most student loan debt: Fidelity study
More than 44 million Americans owe an estimated $1.67 trillion in student debt — and Baby Boomers lead the pack over other generations.

Boomers owed 33% more debt in 2020 vs. 2019, due in part to Parents Plus loans secured for children and grandchildren, according to more than 250,000 loans surveyed by Fidelity.

“People in their 50s and 60s should be preparing for retirement,” said Asha Srikantiah, head of Fidelity Investments' student debt program. “This is the first generation taking on debt of up to $100,000 to support one or more kids through college.”

Surprised? Brookings research confirms a similar trend: Higher-income Americans owe the most dollar-wise in student loans, and Boomers hold the most assets.
Nonprofit lender to offer loans and financial coaching to low-income Texas families
The coronavirus pandemic has put more than 3 million Texans out of work. They, along with the nearly 1.4 million> Texas households that fall below the federal poverty line, will soon have a new resource to help them build their credit and avoid high interest loans that can cripple their finances.

Capital Good Fund ( is a nonprofit, U.S. Treasury-certified Community Development Financial Institution that provides equitable loans to low-income families for a variety of key needs, including immigration expenses (citizenship applications, green card renewal, family petitions, etc.); vehicle purchase, repair, or refinance; security deposits; and emergencies, the company said in a news release.
Alternative Financial Service Providers Association
315 Tuscarora St., Lewiston, NY 14092