August 22, 2019

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CFPB and Payday Lending.  The deadline comes and goes.

August 19 is here, and a deadline comes and goes. The repayment provisions of the Consumer Financial Protection Bureau's (CFPB) payday lending rule will not be in place as of today, which had been the date mandated in regulations announced two years ago.

As reported by the CreditUnionTimes and other sites, the rule would have let payday lenders withdraw money from borrowers' bank accounts to satisfy loan payback.

The news comes after a federal judge in Texas agreed to requests by the CFPB and a payday lending trade group, the Community Financial Services Association of America (CFSA), to extend the timeframe for enforcement. The CFPB had filed suit to challenge the rule's implementation, and critics had charged that the rule could drive lenders out of business.

"Neither party requests the court to lift the stay of litigation or the stay of the compliance date at this time," wrote U.S. District Judge Lee Yeakel. The compliance date has been pushed back to Nov. 18, 2020. Read more at PYMNTS.COM


Fiscal 50: State Trends and Analysis

State Trends and Analysis, an interactive resource from The Pew Charitable Trusts, allows you to sort and analyze data on key fiscal, economic, and demographic trends in the 50 states and understand their impact on states' fiscal health.

Insights From Fiscal 50's Key Measures of State Fiscal Health. August 20, 2019

In 10th year of recovery, states' fiscal and economic prospects improve
After years of slow progress, states benefited from a more promising economic and fiscal environment in 2018. Pressure on state finances eased as the U.S. economic recovery was poised to become the longest on record and state tax revenue jumped, at least temporarily. Still, not all states have fully recovered from the shocks of the Great Recession more than a decade ago. Some are in a stronger position than others as they try to gauge how long the recovery will last.

A surge in tax receipts provided budget relief for many states, though some of the extra money was due to short-lived effects from the federal Tax Cuts and Jobs Act. Tax collections in 40 states surpassed their recession-era peaks by the end of 2018, after adjusting for inflation. The extra revenue led some states to add to their rainy day funds, which could cover a bigger share of spending than before the recession in at least half the states.
Read more at Pew Charitable Trusts


My Summer Working for a Payday Lender

Payday lending has grabbed headlines in the past several years for its danger to vulnerable borrowers who can't pay back the principal, plus high interest rates packaged in these "fast cash" loans. In 2017, the U.S. Consumer Financial Protection Bureau passed new rules requiring payday and other similar lenders to make sure borrowers could pay back their obligations in a reasonable amount of time so they wouldn't fall into a debt trap, and then gave the industry two years to prepare. These payday loan safeguards were set to take effect this Monday, August 19, 2019 - but have been delayed by the Trump administration for at least another 15 months.

Given the news swirling around the payday lending industry, KWHS thought the timing couldn't be better when high school student Ari Berke reached out to us with an idea to write about his unique summer job experience. Ari is a senior at Yavneh Academy of Dallas in Texas, U.S. He is a repeat KWHS contributor, previously submitting an essay about his passion for investing and providing some analysis for this year's spate of tech IPOs. He is especially interested in finance.

In this, his latest first-person essay, Ari takes us inside the controversial payday lending industry, where he worked this summer. He presents a somewhat unexpected perspective on why he believes laws restricting the payday lending business have resulted in "unintended consequences."

Did you know that 40% of Americans can't cover an unexpected $400 expense? That means tens of millions of American adults literally can't afford to have a flat tire or a broken arm. A report published in 2018 by the Federal Reserve Board pointed out that those who don't have access to emergency cash would have to borrow or sell something to get the money. Some 10 million Americans take out what's called a payday loan, a loan marketed as a way to access cash until the next time you get your paycheck.
Read more at The Wharton School, The University of Pennsylvania


FDIC approves tweak of Volcker Rule, easing trading regulations for Wall Street banks
  • The tweak, if sanctioned by all regulators, would help clarify the way in which banks trade securities using their own funds.
  • Regulators hope to clear up definitions surrounding "proprietary trading" in response to industry complaints that the rules are too convoluted and burdensome.
  • The Volcker Rule was initially enacted under the Dodd-Frank Act and prevented banks from investing their own money in hedge funds and private equity funds.
  • "The rule has turned out to be so complex that it required 21 sets of Frequently Asked Questions," says FDIC Chairman Jelena McWilliams.

The Federal Deposit Insurance Corp on Tuesday voted to approve a five-agency revision of the post-crisis regulation known as the Volcker Rule.

The tweak, if sanctioned by all regulators, would help clarify the way in which banks trade securities using their own funds, the ban of which was a key portion of legislation from the post-financial crisis bank crackdown.

That issue concerns the definition of "proprietary trading," a transaction conducted by a firm designed for direct market gain instead of investing on behalf of clients. Read more at CNBC



"Trust Science® is well known for their leadership and innovation"

Tim Latimer, President and CEO of Cashco Financial recently took the time to write a letter of recommendation for Trust Science® and the services that the company provides.

The letter and a recent article about Tim can be found below.

What's the Statute of Limitations on Credit Card Debt?

Thanks to TV shows like "Law and Order," you might know there's a statute of limitations for criminal charges. What's not as well known, however, is that there's also a statute of limitations on debt.

"Many debts have a statute of limitations, meaning that creditors only have a certain amount of time during which they can take legal action to recoup debt that you owe," says Leslie H. Tayne, debt resolution attorney at Tayne Law Group in New York and author of the money management book "Life & Debt." "However, it's up to you to prove that a debt has passed the statute of limitations, as the court system does not keep track of it."

The duration of the statute depends on which state is identified in the contract or the state you live in, and the type of debt in question. For credit card debt, statute limits are generally between three to six years but can be longer, which is why it's important to know which statute your debt falls under.

How Your State Affects the Statute of Limitations

Figuring out which statute applies to your credit card debt isn't always straightforward, according to consumer bankruptcy lawyer G. Donald Golden, founding attorney of The Golden Law Group in Florida. Read more at U.S.News & World Report


ILLINOIS: New program aims to help one in five Illinois households without bank accounts

One in five households in Illinois do not use, or rarely use banks, that number is even higher in some rural areas of the state.

Instead of banks, some residents turn to other, more costly options for banking services and borrowing money. Gov. J.B. Pritzker and Illinois Comptroller Susana Mendoza appeared together Monday to announce the state's new Bank On initiative.

Pritzker said the Bank On program will make it easier for those who are more susceptible to predatory lenders to get access to banks and the resources of financial institutions.

"The Bank On program will allow any Illinois resident to go online and plug in their address to find verified, quality banking options in their area," the governor said. "These low- or no-fee, no minimum balance accounts already exist across our state. People just need the tools to find them."

States Kick Off 2019 with Widespread Economic Growth

States' economies have improved at different paces since the Great Recession, as reflected by the combined personal income of all residents. First-place North Dakota has grown more than four times faster than last-place Connecticut. In a sign of underlying economic strength, total personal income rose in all 50 states in early 2019 for the second straight quarter. Read more below.

The national recovery has been long-running, but economic growth, reflected in the combined personal income of all residents, is still off its historic pace. Through the first quarter of 2019, total U.S. personal income rose by the equivalent of 1.9 percent a year since the recession began, compared with the equivalent of 2.6 percent over the past 30 years, after accounting for inflation. The rates represent the constant pace at which inflation-adjusted state personal income would need to grow each year to reach the most recent level and are one way of tracking a state's economic trends.

After tumbling nationwide except in West Virginia during the depths of the recession, personal income totals have recovered in all states but have grown at far different rates..
Read more at Pew Charitable Trusts

CFSA CFSA Conference

INDIANA: Payday loans through employer? Indiana lawmakers discuss idea

INDIANAPOLIS (WISH) - State lawmakers recently talked about creating more options for payday loans.

It's just one of several topics during the summer study committees.

The U.S. Consumer Financial Protection Bureau says payday loans are meant to be short-term debts, but most people can't afford to pay back all the money they owe by their next paycheck.

Indiana lawmakers talked Thursday about another option or idea: getting a payday loan from your employer.

Like many Americans, single mother Victoria Whittaker took out a payday loan a few years ago. "I really didn't want to do it, but it's like either that or get everything cut off. Kind of was like a need, yeah." Read more at MYWABASH

Dreher Tomkies LLP
ACE Cash Express Raises $55,634 for Children Battling Cancer

DALLAS, Aug. 20, 2019 -- During the month of May, ACE Cash Express' annual fundraising event, the Give A Little Campaign, raised $55,634 for Alex's Lemonade Stand Foundation (ALSF), a nonprofit organization that devotes its time and resources to finding cures for childhood cancer.

"We are honored to be one of the organizations ACE Cash Express chooses to donate their annual fundraising dollars to," said Liz Scott, Co-Executive Director of ALSF and Alex's mom. "It is support like theirs that helps make a difference in the lives of children fighting cancer."

The Give A Little Campaign is a national in-store fundraiser that supports charities chosen by ACE employees that help children, support education and promote financial literacy. By supporting Alex's Lemonade Stand Foundation, ACE can join the fight against pediatric cancers and help carry on Alex's legacy of finding a cure for children battling cancer.
Read more at ACE Cash Express


Careers and Caregiving Compete for Employees' Hours

Employees and employers say flexible schedules can help

For many Americans, the workday doesn't end when they leave their jobs. Millions of employees struggle to balance job responsibilities with the need to care for an aging or ill family member. At the same time, employers are recognizing the impact of caregiving demands on their businesses as they confront challenges attracting and retaining talent in a competitive job market.

Building flexibility into work schedules can help employees stay in the labor force, which is critical to their economic stability. It also can help employers recruit and retain the people they need.

The nation's economy has seen strong growth since the Great Recession, but many people are still struggling to balance work and family needs. The Pew Charitable Trusts in 2018 interviewed employees and employers in eight cities and three rural areas across the country. The employees' households had total incomes of no more than $75,000 a year.

The qualitative analysis provides insights into common economic challenges. In the interviews, many employees spoke about the need for workplace flexibility to care for relatives.
Read more at Pew Charitable Trusts



Batch Processing

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Batch Processing is available across most of MicroBilt's products. There is no minimum batch or file size, and customized processing is available to meet the needs of your company. Contact us for details.

On-demand batch processing enables high volume data processing to increase operational efficiency. Multiple file formats are accepted, including Excel and CSV files. Available across almost all of Microbilt's products, batch processing is commonly used for handling high volume requests like:
  • Locating addresses and phones
  • Uncovering assets (POE, bank account, property, etc.)
  • Performing account segmentations
  • Account monitoring (contact information changes, derogatory public records, etc.)
  • Bank account verification

New Interactive Tool Helps States Evaluate Debt

Research by Pew shows multiple factors influence borrowing

A new interactive tool from The Pew Charitable Trusts can help state leaders better assess their debt and see how their practices and positions compare with those in other states.

Pew's research on debt management examines how states determine how much they can or should borrow. No universal guidelines exist for how much debt state governments can afford. So, when policymakers try to assess how much to borrow for state priorities-to build roads, repair bridges, or remodel schools, for example-they often compare their own debt levels to those of other states. Many policymakers look to geographic neighbors or states with the same credit rating to make these comparisons, but research suggests there might be a better way.

States should consider several factors when comparing debt levels. Those with growing populations, for example, may wish to borrow more to strengthen their infrastructure in the face of rising use and need. Meanwhile, debt limits or other policies that constrain borrowing can affect state liabilities.
Read more at Pew Charitable Trusts


Despite Year-End Dip, State Tax Revenue Is Still High

State tax revenue fell slightly in the fourth quarter of 2018, trimming the number of states in which collections had fully recovered from the Great Recession to 40, one less than the record high a quarter before, after accounting for inflation. The dip interrupted one of the strongest stretches of growth since the downturn, though fresh gains were projected for the first half of 2019.

While state tax revenue fell slightly in late 2018-the first quarterly decline in two years-collections were near historic highs: 12.6 percent above their 2008 peak, after adjusting for inflation, just below a record 13.4 percent in the previous quarter.

The results mean that states collectively had the equivalent of 12.6 cents more in purchasing power for every $1 they collected at their recession-era peak more than a decade earlier, after adjusting for inflation and averaging across four quarters to smooth seasonal fluctuations.

State tax revenue turned a corner in late 2017 after the weakest two years of growth-outside of a recession-in at least 30 years. Revenue collections have been boosted in part by the 2017 federal Tax Cuts and Jobs Act-which cut federal income tax rates but increased what many individuals and businesses owed to state tax collectors-as well as by favorable economic conditions, state policy actions, and robust stock market returns in late 2017 through much of 2018.
Read more at Pew Charitable Trusts


US has half a million fewer jobs than believed after big government revision

The labor market seemed to defy gravity last year, generating more than 200,000 jobs a month despite a historically low unemployment rate that made it harder for employers to find workers.

Turns out job growth wasn't as robust as it appeared.

The Labor Department revised down total job gains from April 2018 to March 2019 by 501,000, the agency said Wednesday, the largest downward revision in a decade.

The agency's annual benchmark revision is based on state unemployment insurance records that reflect actual payrolls while its earlier estimates are derived from surveys. The preliminary figure could be revised further early next year.

The large change means job growth averaged 170,000 a month during the 12-month period, down from the 210,000 initially estimated, according to JPMorgan Chase.
 Read more at USA TODAY


Facebook and Libra are Preparing to Shakeup the E-commerce World

Chances are, if you're a merchant and you're selling goods via Facebook, you've heard about Libra. Libra is one of the hottest topics around the globe right now, with everyone from politicians to the general public discussing its incredible potential.

If all goes as planned and Facebook manages to get Libra off the ground, businesses and merchants will have an incredibly powerful tool at their disposal to help increase sales and boost their bottom line.

Let's meet Libra.
For the uninitiated, let's get into Libra and explore exactly what it is and how it can help entrepreneurs supercharge their Facebook stores. Libra is going to be a digital currency that's backed by financial assets and U.S. Treasury securities, meaning that it won't be volatile like other digital currencies.

This is a crucial aspect for merchants, as nobody wants to accept two Libra for their goods and services, only to find out minutes later that the customer underpaid due to volatility. Unlike Bitcoin, Ethereum and other digital currencies, Libra will have stability in its price and not suffer huge fluctuations. Read more at Entrepreneur Media, Inc.


Proposed SEC changes receive praise from legislator

Sen. Mark R. Warner (D-VA) is lauding the Securities and Exchange Commission's (SEC) recent proposal to modernize the reporting and disclosure of human capital management practices.

Proponents of the action maintain human capital management disclosures lend insight into how companies compensate, train, retain and incentivize employees, adding several studies have determined human capital management disclosures are an important predictor of a company's long-term success in a changing economy.

"I'm excited to see the SEC take this important step to recognize the significance of human capital management and the role it plays in the 21st-century economy," Warner said. "Many of the ideas outlined in the proposed rule would go a long way in providing investors with the information they need to evaluate whether a company is making the appropriate investments in its workforce."
Read more at Financial Regulation News


Alternative Financial Service Providers Association

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