ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
November 10, 2020
The Gateway For Payroll Data
SBA ordered to release names of all PPP, EIDL borrowers, loan amounts
  • A federal judge ordered the Small Business Administration (SBA) on Thursday to release by Nov. 19 the names of all Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) borrowers and precise loan amounts.
  • "The significant public interest in shedding light on SBA's administration of the PPP and EIDL program dramatically outweighs any limited private interest in nondisclosure," Judge James Boasberg of the U.S. District Court for the District of Columbia wrote in his order.
  • The SBA in July disclosed the names, addresses, ZIP codes, demographic data and industry codes of borrowers on PPP loans of $150,000 or more. However, that list accounts for less than 15% of loans made through the program. Roughly 4.5 million of the 5.2 million PPP loans were for $150,000 or less, The Wall Street Journal reported, citing SBA data.

Lending as a Service
Supreme Court ruling could make robocalls ‘virtually unstoppable’
Facebook (FB) is fighting a case in the Supreme Court. It’s not about fake news, foreign influence, censorship, or antitrust issues – it’s about robocalls.

This is the second time in 2020 that the Supreme Court has heard a case involving robocalls.

Efforts to fight robocalls through new legislation foundered this year as the divided Congress left out key provisions that defined exactly what a robocall really is.

In 2014, Noah Duguid started receiving a ton of texts from Facebook regarding his "account" – even though he didn’t have a Facebook account. Irritated, he asked Facebook to stop sending him messages. The company did not stop and he sued. Now, it’s gone all the way to the Supreme Court.
Paving the Payments Future
Consumer Financial Protection Bureau Issues No Action Letter to Facilitate Consumer Access to Small-Dollar Loans
Bureau also announces the start of an effort to understand how payday lending disclosures can help consumers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) granted a no-action letter (NAL) to Bank of America, N.A. regarding certain small-dollar credit products. Issued under the updated NAL Policy from last year, NALs provide increased regulatory certainty that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances. Bank of America’s NAL application is based on the NAL Template issued by the Bureau on May 22, 2020 in response to an application from the Bank Policy Institute. The Bureau approved the NAL Template to further competition in the small-dollar lending space, which fosters access to credit while including important protections for consumers who seek small-dollar loan products.

The Bureau today also submitted a Paperwork Reduction Act (PRA) notice to the Office of the Federal Register for publication. The PRA notice relates to its research efforts to identify information that could be disclosed to consumers during the payday loan process to help them make better-informed decisions. The testing of different consumer disclosures supports the Bureau’s commitment to ensuring that consumers have the information they need to understand the small dollar products available to them so they can make the choices that are best for them and their personal circumstances.
UPDATE!

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.

No Open And Shut Path For Open Banking As CFPB Mulls Rules
If data is the oil that brings change to financial services, the pipelines are increasingly under scrutiny.

Late last week, the Consumer Financial Protection Bureau (CFPB) said it will look to issue advance notice of proposed rulemaking on “open banking” by the end of this year.

In other words, there may be a range of potential new rules coming into play in the U.S. And that means the path toward open banking, where, in Europe for example, banks share account data with authorized parties in standardized formats, may be anything but smooth.

In terms of the mechanics of process, the advance notice requests information from stakeholders about how to access financial data — and what data should be accessed.
WELCOME to a NEW AFSPA ENDORSED SUPPLIER!
The average millennial has $27,251 in non-mortgage consumer debt—here’s how they compare to other generations
Millennials are the generation with the fastest growing debt. Here’s a look at what the average millennial is borrowing.

Millennials are the generation with the fastest growing debt load, which isn’t surprising when you consider this cohort is increasingly having children, buying homes and continuing to pay off their student loans. According to the Experian 2020 State of Credit report, the average millennial consumer has about $27,251 in non-mortgage debt, and millennial homeowners have an average mortgage balance of $232,372.

Experian reports that the $27,251 in non-mortgage consumer debt includes any revolving credit or installment loans, including credit cards, student loans, car loans and/or personal loans.
OCC payments charter proposal raises questions about what is a bank
Opponents say the new setup would fragment the supervisory system for banks; proponents say it’ll do just the opposite

Recent moves by the Office of the Comptroller of the Currency are forcing Congress to ask a deceptively complex question: What is a bank?

Acting Comptroller of the Currency Brian Brooks previewed plans over the summer to grant bank charters for national money transmitters. The federal charter would allow some payment servicers to get a single, federal operating license, supplanting the need for state licenses wherever they operate and allowing them access to the Federal Reserve’s payments clearing system.

Opponents say the new charter would fragment the supervisory system for banks because payment companies chartered as banks by the OCC wouldn’t necessarily be considered banks by the Fed or the Federal Deposit Insurance Corporation. Such a status would let them evade rules designed to avoid bank bankruptcies.
Wells Fargo plans to freeze raises for workers earning over $150K
  • Wells Fargo plans to freeze increases in base pay in the coming year for employees making more than $150,000, the bank told some managers Wednesday, according to Bloomberg, which cited anonymous sources.
  • The move marks the bank's second attempt in as many weeks to limit expenses or perks given to its higher earners.
  • CEO Charlie Scharf said in July he's aiming to cut $10 billion in annual expenses from the bank's costs.

Nebraska Voters OK 36% Cap on Payday Loan Interest
Nebraska has become the latest state to cap interest rates on payday loans that consumer activists say are exorbitant and predatory.

In Tuesday’s election, roughly 83% of Nebraska voters approved Initiative 428, which puts a 36% annual limit on the interest payday lenders can charge.

Previously, the average interest rate for a payday loan in Nebraska was 404%, according to the Nebraskans for Responsible Lending coalition, which helped get the initiative on the ballot.

With the passage of the measure, Nebraska joins 16 other states and Washington, D.C., in imposing restrictions on payday loan interest rates and fees, according to the ACLU.
JPMorgan CEO Jamie Dimon: Biden win is 'time for unity'
Dimon is among the most vocal CEOs when it comes to policies

JPMorgan CEO Jamie Dimon, who heads the largest U.S. bank and is among the most vocal corporate chieftains on policy, is urging employees and individuals to unite following the confirmation of President-elect Joe Biden.

“Now is a time for unity. We must respect the results of the U.S. presidential election and, as we have with every election, honor the decision of the voters and support a peaceful transition of power. We are a stronger country when we treat each other with dignity, share a commitment to a common purpose and are united to address our greater challenges. No matter our political views, let’s come together to strengthen our exceptional country,” said Dimon in a statement obtained by FOX Business on Saturday.
Discharging student loans in bankruptcy—could it soon get easier?
Change is a-coming: Some recent decisions could serve as a precedent for future bankruptcy cases involving student loans

Student loan borrowers who seek to have their debt canceled in bankruptcy — what’s known as discharge — typically find it an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and lawmakers’ support of relief for overburdened borrowers may signal a change is coming.

In January, a New York court discharged over $200,000 of student loan debt for one borrower. Then, in August, a federal appeals court ruling eliminated $200,000 for a Colorado couple who held 11 private student loan accounts. And in September, a New York judge ruled to enforce a prior bankruptcy discharge of a borrower’s $400,000 of federal student loans that a servicer had failed to carry out.
SBA presses big businesses to justify aid, sparking uproar
The questions posed by the SBA have rattled banks, which issued the loans and would be responsible for delivering the questionnaires to the agency.

The Small Business Administration is quietly rolling out an effort to scrutinize the largest businesses that took payroll support loans during the pandemic, demanding new details about their operations to justify the aid.

The SBA this week began to circulate "loan necessity" questionnaires aimed at companies and nonprofits that took forgivable Paycheck Protection Program loans worth $2 million or more. The agency declined to comment on the forms and issued no public announcement beyond a brief Federal Register notice marking their release, but copies were obtained by POLITICO.
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092