July 2, 2020
AFSPA Partner


AFSPA Partner


Trump supports stimulus payments larger than $1,200 in next stimulus bill, he tells FBN

President said he wants money to get into people's pockets so they can spend it

President Trump supports another round of economic impact payments to individuals, he told FOX Business on Wednesday.

Trump told FOX Business' Blake Burman that he supported the measure as part of another stimulus package, so long as it "done properly."

"I support actually larger numbers than the Democrats, but it's got to be done properly," Trump said. "I want the money getting to people to be larger so they can spend it. I want the money to get there quickly and in a noncomplicated fashion."
Read more at FOX BUSINESS

Online Lenders Alliance CEO Mary Jackson Statement Responding to the Supreme Court's Ruling in CFPB Case

After the United States Supreme Court issued a 5-4 ruling in Seila Law v. Consumer Financial Protection Bureau finding that the director of the Consumer Financial Protection Bureau can be removed by the President at will, Online Lenders Alliance CEO Mary Jackson issued the following statement:

"We are pleased with today's ruling as it settles an issue that has been fiercely debated since before the CFPB even opened its doors. With this decision now in the rear view, the Bureau can fully dedicate itself to the important mission at hand without any uncertainty around the constitutionality of its structure.

"The Online Lenders Alliance has long been a fierce advocate of responsible consumer protections. Our organization has led the industry in implementing our robust set of best practices which were developed with consumers in mind, and we have gone above and beyond to protect consumers in other ways. This includes the OLA Consumer Hotline, the OLA Seal, and our policing efforts to catch, investigate, and report (when warranted) fraud and abuse. OLA's state of the art web-crawling program that searches Internet sites to identify any misleading claims. Once identification is complete, OLA works with the websites to delete or change any misleading statements. The effort has been successful: since initiating the program in 2016, more than 1 million websites have been reviewed for potential violations of OLA Best Practices with remediation rates that annually reach approximately 98 percent. Violators who do not comply are published and details turned over to the appropriate federal regulator.
Read more at Online Lenders Alliance

Dreher Tomkies LLP

Survey: Lending cash to loved ones ends badly for nearly half of Americans

Despite good intentions, lending to friends and family can often lead to some uncomfortable situations.

According to Bankrate's latest survey of 2490 U.S. adults, 60 percent of Americans have helped out a friend or family member by lending cash with the expectation of being paid back, while 17 percent have lent their credit card and 21 percent have co-signed for a financial product like a loan or rental.

But more than a third (35 percent) who participated in at least one of these activities were negatively impacted, resulting in lost money or harmed relationship.
Read more at BANKRATE

CFPB Announces Tech Sprints To Empower Consumers, Reduce Regulatory Burden

WASHINGTON, D.C. - The Consumer Financial Protection Bureau (Bureau) today announced its first-ever Tech Sprints to reduce regulatory burden and improve consumer understanding of financial services. The Bureau's Tech Sprints program will bring together regulators, technologists, software providers, consumer groups, and financial institutions to develop technological solutions to shared compliance challenges. The first Tech Sprint will kick off in October with another in March 2021.

Participants in the October 5-9, 2020, Tech Sprint will be asked to improve upon existing consumer disclosures. Many federal consumer financial laws were written in a paper-based age. The use of digital technology and alternative delivery mechanisms (e.g., online or mobile) for disclosure content may enable greater consumer engagement and understanding. Participants in this Tech Sprint will design innovative electronic methods for informing consumers about adverse credit actions, including from the use of algorithms. Under federal law, applicants for credit are generally entitled to receive the principal reasons why creditors take adverse action, and when creditors use a credit score, key factors adversely affecting that score.
Read more at CFPB


United States Supreme Court Provides Little Guidance to Remedy an Unconstitutional CFPB. by Clark Hill

The Consumer Financial Protection Bureau (CFPB or Bureau) has been a federal agency like no other. Born out of the last financial crisis, the Dodd-Frank Act envisioned the CFPB to be an independent agency, free of "political influence." Congress thus authorized the CFPB to be led by a single director - rather than a board of multiple members - who would possess significant rulemaking and enforcement over 19 consumer protection statutes as well as unfair, deceptive, and abusive acts and practices. Its single director structure - only removable for "inefficiency, neglect of duty or malfeasance" - as well as its funding outside the appropriation process - provoked strong opinions from industry and advocates alike.

The Underlying Case
After years of political wrangling, the United States Supreme Court issued its long-awaited decision in the case of Seila Law, LLC v. CFPB. Seila involved a law firm from California that provided debt relief services to consumers. The CFPB served a civil investigation demand (CID) upon the law firm. When the law firm failed to respond to the CID, the CFPB filed a Petition to Enforce the CID in the Federal District Court in California. Seila argued that the CFPB did not have authority to issue the CID because the structure of the CFPB of a single director, who can only be fired for cause by the President, was unconstitutional and violated the separation of powers.
Read more at CLARK HILL

Working from home costs employees more in everyday expenses, survey says

Working from home has many allures for employees, like flexible schedules, hanging out with the kids and working in your jammies. But when it comes to money, it's the employers who get the advantage. Companies save as much as $11,000 per year for workers staying home half the time.

For employees, costs are higher, according to a survey from Average monthly costs are $108 higher for people who work from home. The biggest increase in costs is for groceries up $182 per month, and utilities up $121 per month. Workers saw savings, however, in many other categories, including childcare, where spending was down $34 a month on average; gas and public transport down $33 a month; restaurants down $27; and clothing and dry cleaning down $4.
Read more at FOX BUSINESS


U.S. lenders, businesses brace for disclosure on small business pandemic aid

WASHINGTON (Reuters) - Americans will soon get a first full look at which businesses received $515 billion of taxpayer funds when the government, after initial resistance by President Donald Trump's administration, releases borrower data for one of its highest- profile pandemic aid efforts.

The colossal data set for the Paycheck Protection Program, to be released by the Treasury Department and Small Business Administration in the coming days, will provide transparency for a first-come-first-served program that from the outset was plagued by technology, paperwork and fairness issues.

That could make life uncomfortable for borrowers that broke the spirit or letter of the rules, and for banks that shoveled the money out the door. The aim of the $660 billion program was to help cash-strapped companies keep workers employed and make rent.
Read more at REUTERS

Watchdog calls for fraud crackdown at small business lending program

Thursday to step up efforts to police the government's massive small business rescue program after finding a significant risk of fraud and resistance to oversight at the agency running the bailout.

The Government Accountability Office targeted the Small Business Administration in a sweeping new report looking at how agencies have used $2.6 trillion in economic relief funds appropriated in response to the Covid-19 pandemic.

In the report, the GAO said the $670 billion Paycheck Protection Program, which offers small business loans that can be forgiven in exchange for maintaining payroll, had limited safeguards and insufficient guidance and oversight planning - all of which have increased the likelihood that borrowers may misuse or improperly receive loans.
Read more at POLITICO


Second flood of coronavirus-driven layoffs may come as states delay, roll back reopening

Effects of virus-related uncertainty will filter through entire economy, expert warns

As coronavirus cases spike in some areas of the U.S. - including in Texas and California - reopening plans have been paused or even scaled back, which could be bad news from some in the labor force.

In hard-hit industries like retail and dining, many businesses were on the path toward returning their workforces to full capacity before the latest outbreak changed the course of tiered reopening in some areas.

"I do think it's likely we're going to see furloughs happen again with those workers," Dr. Anthony Harris, WorkCare's chief innovation officer and medical director, told FOX Business. "Hopefully it's temporary but the indicators in terms of the incidence of illness are pointing in the wrong direction." Read more at FOX BUSINESS

Conforming data collection to cybersecurity industry regulations

"There are only two types of companies: those that have been hacked, and those that will be." When former FBI Director Robert Mueller spoke those words in 2012, he sounded hyperbolic. Almost a decade later, it seems prophetic.

Most businesses rely on the internet. The internet runs on data. So data collection is at the heart of cybersecurity. Businesses that do not appreciate their data collection laws pay a dear price. This price may range from stiff fines to embarrassing regulatory hearings to the loss of key executives as with Target.

Data collection practices must conform to at least one of four broad areas, depending on the business. Read more at SECURITY MAGAZINE



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