DOCSLIB.ORG

Reasons for Being Unbanked

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Reasons for Being Unbanked THURSDAY JUNE 24, 2021 VOL. 186 No. 120 AMERICANBANKER.COM Follow us on Twitter @AmerBanker Nicolet Bankshares 5 acquiring rival Wisconsin bank for $219 million Reasons for being In buying the $1.5 billion-asset County Bancorp, Nicolet would become the second- unbanked largest bank in Wisconsin and the state’s No. 1 dairy lender. It’s the second bank Balance minimums lead the list of explanations unbanked acquisition deal Nicolet has announced this consumers give for not having a bank account. The proposed quarter. Page 5 FedAccounts would bar such limits. See story on page 2 P2P payments surged 6 during pandemic. So did the complaints about them. Lack funds to meet mininum balance requirements Gripes against peer-to-peer payments 29% services spiked during the past year as U.S. Don't trust banks consumers flocked to Venmo, Cash App, 16.1% Zelle and the like to transfer money. Page 6 Problems with personal ID, credit or former bank account 8% Fees are too high Sterling Bancorp’s AI assistant 7.3% 7 tackles half of customer calls Privacy fears The suburban New York bank says Skye, 7.1% its conversational artificial intelligence assistant, is doing the work of 100 full-time 0% 5% 10% 15%20% 25%30% employees. Page 6 Source: FDIC survey in 2019 of 32,904 households More than prepaid: Payoneer 8 broadens its sales pitch ahead of public listing The fintech, which is going public through a dailybriefing Cross River buys lending merger with a special-purpose acquisition 3 fintech, exec says company, has updated its logo and ‘more to come’ messaging to emphasize its capabilities FedAccounts billed as gift to The bank’s holding company, CRB Group, in e-commerce and digital marketing. It’s 1 bankers. Many are dubious. has acquired PeerIQ, an online lending part of a trend of traditional payments such No-fee digital bank accounts subsidized by marketplace data provider backed by as TransferWise, Fattmerchant and even the Federal Reserve would help community the former CEOs of Morgan Stanley and Mastercard repositioning themselves to win banks draw in new customers and pay for Citigroup. It’s said it wants more deals like over investors. Page 8 technology upgrades, proponents of the idea this one. Page 3 say. But it’s a hard sell to executives skeptical $36B wealth manager eyes of government involvement in retail Arkansas CDFI channeling 9 credit union expansion with LPL banking. (See chart above.) Page 2 4 funds from Square into apps Most credit unions don’t offer planning for underbanked services, and affiliating with the No. 1 IBD Fifth Third buying Southern Bancorp, a community could help CUNA Brokerage change that, the 2 health care lender Provide development financial institution, will firm’s president says. Page 9 The fintech specializes in lending to dentists, devote part of a multimillion-dollar veterinarians and other solo providers investment from the payments giant to Loan modifications are up looking to grow or establish their own developing technology that helps consumers 10 for the first time in a year, practice. Page 3 budget, buy a home and more. Page 4 FHFA finds Evaluations for payment reduction still represent a relatively small share of home retention actions but their uptick could add incrementally to servicers’ workloads. Page 10 THURSDAY JUNE 24, 2021 AMERICANBANKER.COM PAGE 2 the option to do so, also. The Fed would community banks,” said Lev Menand, an CONSUMER BANKING reimburse banks with assets under $10 academic fellow at Columbia Law School billion each quarter for the costs they incur who co-authored a 2018 paper outlining to set up and operate the accounts; the the benefits of a public banking option. “It FedAccounts amount of reimbursement has not been would bring in millions of households that specified. are currently not in the system. … And that billed as gift Bankers’ main objection to the legislation sort of thing, entrance into the mainstream is that the accounts would be offered money and payment system, means that through the Postal Service, an independent there are more people who are able to enter to bankers. government agency that the industry the market for financial products.” believes isn’t equipped to offer basic banking Mehrsa Baradaran, a professor at Many are services. They also oppose the Federal University of California, Irvine School of Reserve’s involvement in banking activities Law and author of “How the Other Half that traditionally have been conducted in Banks,” said that offering free FedAccounts dubious. the private sector. to consumers at bank branches ultimately But advocates of the legislation contend it would increase banks’ lending opportunities. By Neil Haggerty could be a boon for the industry. “You can ask most bankers and they June 23, 2021 Saule Omarova, a professor of corporate would say that the deposit gets you in the WASHINGTON — Senate Banking law and financial regulation at Cornell Law door, but the real money, of course, is in Committee Chairman Sherrod Brown has School, said that the proposal would help lending,” Baradaran said. spent months advocating for his legislation smaller banks that are struggling to keep up Jesse Van Tol, CEO of the National to offer all consumers free government- with advances in technology. Community Reinvestment Coalition, said backed digital bank accounts available “For small banks this really is their kind that FedAccounts could help banks attract through bank branches and U.S. Postal of best chance of longer-term survival customers who don’t trust banks with their Service offices. in the current environment within the money. While the proposal has been met with industry itself … with all of this technology “I do think that historically products widespread opposition from the banking and digitization,” she said. “Big Wall Street that have the imprimatur of the federal industry, Brown argues the legislation will banks, like JPMorgan and Bank of America, government are helpful in overcoming that not only bring new customers into bank or big tech companies, like the Amazons and trust deficit,” Van Tol said. branches, but also help smaller banks build Facebooks of the world, have a structural Roughly 16% of unbanked consumers their technology infrastructure. advantage that cannot be eroded.” cited a lack of trust in financial institutions “It’s getting harder and harder for small Other advocates say that banks will be as the main reason why they don’t have bank banks to compete for new customers when able to cross-sell to new customers who walk accounts, according to the FDIC survey. big tech companies can afford to spend through the doors of their branch locations Minimum balance requirements were an billions on marketing and technology,” to access FedAccounts. even bigger factor — 29% all unbanked cited the Ohio Democrat said in statement to “I think that Sen. Brown is totally correct balance minimums at financial institutions American Banker. “Under my proposal to say that his legislation would be an avenue as the main reason they don’t have bank for no-fee accounts, small banks would for strengthening the business model of accounts. Other reasons include high fees, be reimbursed for the operating costs of providing these accounts, giving them an affordable way to attract and retain new Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 customers for the long run.” Phone 212-803-8200 AmericanBanker.com The financial industry remains skeptical of Brown’s bill, which was introduced in the Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 early months of the coronavirus pandemic Managing Editor Dean Anason 770.621.9935 when the government was struggling to get Reporters/Producers stimulus payments to unbanked consumers. Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 More than 5% of Americans are unbanked, Washington Bureau Chief Joe Adler 571.403.3832 according to a 2019 survey by the Federal Executive Editor, Technology Miriam Cross 571.403.3834 Deposit Insurance Corp. Penny Crosman 212.803.8673 Jim Dobbs 605.310.7780 Brown’s bill would give all consumers BankThink Editor Rachel Witkowski 571.403.3857 access to free digital bank accounts, known John Heltman 571.403.3847, Allissa Kline 716.243.2679 Community Banking Editor Paul Davis 336.852.9496 as FedAccounts, that would be held at the Hannah Lang 571.403.3855 Federal Reserve and accessible at bank Contributing Editor Daniel Wolfe 212.803.8397 John Reosti 571.403.3864, Gary Siegel 212.803.1560 branches and post offices. Fed-member Digital Managing Editor banks would be required to offer the Christopher Wood 212.803.8437 Kevin Wack 626.486.2341 accounts, and nonmember banks have For up to date and complete coverage go to AmericanBanker.com THURSDAY JUNE 24, 2021 AMERICANBANKER.COM PAGE 3 credit or personal identification issues, and that lower-income Americans need easier middle-market and corporate clients,” Greg privacy concerns. FedAccounts would have access to the financial system say that Carmichael, Fifth Third’s chairman and not minimum balance requirements or Brown’s FedAccounts legislation would be CEO, said in the press release. account fees. a win-win for customers and community Provide specializes in practice lending to Brown’s legislation still faces an uphill banks. health care professionals looking to grow climb to enactment. Sen. Pat Toomey, R-Pa., “There’s something in this bill for or establish their own practice. Its clients the top Republican on the Senate Banking everyone,” said Porter McConnell, campaign include dentists, veterinarians, optometrists panel, said he would fight the legislation director at Take on Wall Street.
Load more

Recommended publications
  • Does Fintech Substitute for Banks? Evidence from the Paycheck Protection Program
    NBER WORKING PAPER SERIES DOES FINTECH SUBSTITUTE FOR BANKS? EVIDENCE FROM THE PAYCHECK PROTECTION PROGRAM Isil Erel Jack Liebersohn Working Paper 27659 http://www.nber.org/papers/w27659 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 August 2020, Revised December 2020 We would like to thank Daniel Green, Greg Howard, Victor Lyonnet, Karen Mills, Bernadette Minton, Claudia Robles-Garcia (discussant), René Stulz, Tejaswi Velayudhan, and participants at the Stanford-Princeton Bendheim Center Corporate Finance and the Macroeconomy conference and seminars at Cambridge, Indiana, Northeastern, Penn State, Oklahoma, Ohio State, and Zurich for very helpful comments. Thanks to May Zhu, Jason Lee and David Xu for excellent research assistance. All errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2020 by Isil Erel and Jack Liebersohn. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Does FinTech Substitute for Banks? Evidence from the Paycheck Protection Program Isil Erel and Jack Liebersohn NBER Working Paper No. 27659 August 2020, Revised December 2020 JEL No. G00,G01,G2,G21,G23,G28,H12,H2,H3 ABSTRACT New technology promises to expand the supply of financial services to small businesses poorly served by the banking system.
    [Show full text]
  • Technology Solutions for PPP and Beyond
    Technology Solutions for PPP and Beyond Research Brief JUNE 2020 Small businesses’ struggles to obtain federal Paycheck Protection Program loans over the last two months underscore the substantial obstacles that they face in accessing capital and financial services more generally. Using data and technology to make small business lending faster, less resource intensive, and more accurate is critical to fostering a more rapid and inclusive economic recovery and to building a more resilient small business sector going forward. Small businesses are experiencing severe hardships during the COVID-19 crisis. To help support businesses with fewer than 500 employees, Congress established the Paycheck Protection Program (PPP) in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).1 The PPP is a temporary emergency Small Business Administration (SBA) 7(a) loan program with favorable terms, including a 100% government guarantee and potential forgiveness. However, PPP implementation has high- lighted and in some cases exacerbated longstanding challenges faced by small businesses in accessing credit: » Verification of identity. Many small businesses did not have extensive relationships with participating banks at the start of the Paycheck Protection Program. To onboard new customers, lenders must comply with identity verification and due diligence requirements, which demand a certain level of rigor, time, and resources. No central information repository exists for businesses, and traditionally used data sources may not include certain companies, such as newly formed businesses. » Insufficient information to evaluate loan applications. Small businesses’ financial information is not publicly available, less standardized than larger companies, and often not digitized. Lenders have historically devoted substantial resources to gathering and analyzing documents and data about small businesses.
    [Show full text]
  • THE ALTERNATIVE LENDING REPORT Volume 1, No
    SmallBusinessLending.io Finance • Technology • Legal & Regulatory • Strategy THE ALTERNATIVE LENDING REPORT Volume 1, No. 2 May 4, 2017 input/output CAN ALTERNATIVE DATA SOLVE ONLINE LEGAL & REGULATORY LENDERS’ ‘ALGORACISM’ PROBLEM? MCA Funder 3 Leaf Capital Called a Fraud by Partner ........................... 3 By Tim Lloyd STRATEGY A March 2017 letter written by Con- Beyond the prevalence of high costs, Online Commercial Lending: gressman Emanuel Cleaver, II (D-Mo.), double dipping, hidden fees, misaligned How it’s Changing the Landscape ............... 4 to Consumer Financial Protection Bureau sales incentives and stacking, the HBS Live Oak Cuts Risk, Woos Director Richard Cordray raises fresh con- paper opines that new algorithms could Women in Business .................................... 5 cerns about “algoracism” tainting the credit- “create unfair or discriminatory access to FINANCE risk-scoring models used by online lenders. credit.” This problem disproportionately Online Lending Associations Rep. Cleaver’s suspicions draw heav- affects black, Hispanic and women-owned Targeting Fintech and Education ................. 6 ily from a 2016 Harvard Business School businesses, in addition to entities that NEW TECHNOLOGY paper titled the “State of Small Business operate in low-income neighborhoods. & PRODUCT LAUNCHES Lending,” which addresses digital disrup- Biased algorithm design can occur if Platform announcements, new tion’s impact on regulation. Cleaver’s let- engineers code data correlation parameters software and services, and notable ter highlighted five predatory practices with attributes that make inadvertently product releases. ......................................... 7 cited by the HBS paper as pervasive in the discriminatory assumptions, which could INDUSTRY NEWS “Wild West” of online lending and alleges be violating the Equal Credit Opportunity A recap of recent news of that risk-scoring algorithms may be Act.
    [Show full text]
  • Securitizing Digital Debts
    Securitizing Digital Debts Christopher K. Odinet* ABSTRACT The promise of financial technology (“fintech”) and artificial intelligence (“AI”) in broadening access to financial products and services continues to capture the imagination of policymakers, Wall Street, and the public. This has been particularly true in the realm of fintech credit where platform companies increasingly provide online loans to consumers, students, and small businesses by harnessing AI underwriting and alternative data. In 2019 alone, fintech lenders represented nearly 50% of total non-credit card, unsecured consumer loan balances in the United States. One of the most prevalent ways fintech credit firms operate is by securitizing the online loans they help originate. In doing so, fintech lenders are able to access the capital markets and further the spread of borrowed capital and credit risk. Against this backdrop of increasing institutional investment in fintech securitized assets, this Article reveals how consumer finance law is playing a subtle but increasingly important role in commercial financial transactions. I do this by exploring how structured finance has come to operate in the fintech credit marketplace and by comparing it to pre-2008 securitization activity in the home mortgage context. In doing so, I critique algorithm-driven credit securitization and point out certain economic and legal risks that make it similar to pre-2008 mortgage securitization, as well as other risks that are unique to fintech finance. These pertain to, among other things, the opacity of loans underwritten through the use of alternative data and machine * Associate Professor of Law and Affiliate Faculty in Entrepreneurship, University of Oklahoma, Norman, OK.
    [Show full text]
  • THE ALTERNATIVE LENDING REPORT Volume 1, No
    SmallBusinessLending.io Finance • Technology • Legal & Regulatory • Strategy THE ALTERNATIVE LENDING REPORT Volume 1, No. 5 June 15, 2017 input/output PROTECTING THE FACTOR FINANCE IN FACTORING AGREEMENTS Is Bizfi Up for Sale or Winding Down? ........ 2 STRATEGY (Part 1 of 2) DRB Calls Rival ‘Parasitic, Immoral’ By Josh Simpson, Esq. in Florida Factoring Lawsuit ........................ 3 Profile of a Small Business Like any financial transaction, factoring whom they intend to contract, before they Lending Applicant ....................................... 4 has quite a few inherent risks. For the fac- contract, to assure that if there is a breach tor those risks include the seller breach- that any damages can be collected.” NEW TECHNOLOGY & PRODUCT LAUNCHES ing the purchasing agreement, or contract, Due diligence in underwriting is the governing the transaction or purchase. The first line of defense against default because Platform announcements, new most common form of default, of course, it helps ensure that the companies you do software and services, and notable product releases. ......................................... 6 is default in payments owed to the factor. business with, and that the invoices you And that’s where it can get tricky. purchase, are sound. INDUSTRY NEWS To understand the legal complexities The Contract A recap of recent news of with collecting defaults, we need to start importance to lenders, brokers, from the beginning of the transaction. Let’s assume you’ve done due diligence and service providers. ................................. 7 Underwriting and want to proceed with buying the LOAN TAPE receivables. Now make sure you have the Firms with SME Loan Exposure .................. 9 What does underwriting have to do best contract possible.
    [Show full text]
  • February 4, 2021 Consumer Financial Protection
    February 4, 2021 Consumer Financial Protection Bureau Re: Advance Notice of Proposed Rulemaking Regarding Consumer Access to Financial Records Docket No.: CFPB-2020-0034 Dear Acting Director Uejio, Thank you for this opportunity to respond to the Consumer Financial Protection Bureau’s Advance Notice of Proposed Rulemaking on Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Background: Financial technology (fintech) offerings have grown rapidly since the passage of Dodd-Frank.1 ​ Many consumer experiences are now occurring digitally, with demonstrably beneficial outcomes for consumers. According to a recent Harris Poll survey, 73% of consumers say that these types 2 of fintech services will be their “new normal” for managing their finances after COVID-19. ​ This ​ growing financial technology ecosystem is built on the premise that consumers own and can knowingly authorize the sharing of their data to gain access to a desired product. We are financial technology companies that provide these types of services, powered by consumer-permissioned data, to millions of American individuals, households, and businesses. Consumers and businesses use our services to track their spending, save for the future, gain access to responsible credit, improve credit scores, pay down debt, and generally achieve their financial goals. Our customers come from a range of financial backgrounds, and bank with a range of financial institutions, from national banks, to digital banks, to local community banks and credit unions. To use our services, consumers rely on their ability to authorize the sharing of their financial data. When authorized access is consistent and reliable, a larger pool of ​ consumers are equipped with access to their financial data, which in turn incentivizes ecosystem participants like us to compete to develop innovative data-driven, consumer-centric services that help consumers and businesses manage their financial lives.
    [Show full text]
  • Project Dissertation Report on PEER to PEER LENDING - an EMERGING INDUSTRY ACROSS the GLOBE
    Project Dissertation Report On PEER TO PEER LENDING - AN EMERGING INDUSTRY ACROSS THE GLOBE Submitted By: Anshu Garg 2K16/MBA/06 Under the Guidance of: Dr. Sonal Thukral Assistant Professor DELHI SCHOOL OF MANAGEMENT Delhi Technological University Bawana Road Delhi 110042 DECLARATION I Anshu Garg, student of MBA 2016-18 of Delhi School of Management, Delhi Technological University, Bawana Road, Delhi-42 declare that Dissertation Project Report on Peer to peer lending – An emerging industry across the globe submitted in partial fulfillment of Degree of Masters of Business Administration is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This Report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship. Anshu Garg Place: Date: i CERTIFICATE FROM THE INSTITUTE This is to certify that the Dissertation Project Report titled Peer to peer lending – An emerging industry across the globe, is a bonafide work carried out by Ms. Anshu Garg of MBA 2016-18 and submitted to Delhi School of Management, Delhi Technological University, Bawana Road, Delhi-42 in partial fulfillment of the requirement for the award of the Degree of Masters of Business Administration. Signature of Guide Signature of Head (DSM) Dr. Sonal Thukral Dr. Rajan Yadav Seal of Head Place: Date: ii ACKNOWLEDGEMENT I gratefully acknowledge my profound indebtedness towards my project mentor, Dr. Sonal Thukral, Assistant professor, Delhi School of Management, Delhi Technological University for her invaluable guidance, excellent supervision and constant encouragement during the entire duration of the project work.
    [Show full text]
  • Financial Technology
    Journal APEX 2016 AWARD WINNER FINANCIAL TECHNOLOGY Available to download at CAPCO.COM/INSTITUTE #44 11.2016 EMPOWERING THE [FINANCIAL] WORLD Pushing the pace of Financial Technology, together we’ll help our clients solve technology challenges for their business – whether it’s capital markets in Mumbai or community banking in Macon. We leverage knowledge and insights from our clients around the world: clients in towns everywhere are becoming 20,000 more efficient, modern and scalable. transactions processed help solve clients’ 27 billion challenges — big and small. moved across the globe in a single year $9 trillion empowers our clients’ communities to build storefronts, homes and careers. hearts and minds have joined forces to 55,000 bring you greater capabilities in even the smallest places. Empowering the Financial World FISGLOBAL.COM © 2016 FIS and/or its subsidiaries. All Rights Reserved. The Capco Institute Journal of Financial Transformation Recipient of the Apex Award for Publication Excellence Editor Shahin Shojai, Global Head, Capco Institute Advisory Board Christine Ciriani, Partner, Capco Chris Geldard, Partner, Capco Nick Jackson, Partner, Capco Editorial Board Franklin Allen, Nippon Life Professor of Finance, University of Pennsylvania Joe Anastasio, Partner, Capco Philippe d’Arvisenet, Adviser and former Group Chief Economist, BNP Paribas Rudi Bogni, former Chief Executive Officer, UBS Private Banking Bruno Bonati, Chairman of the Non-Executive Board, Zuger Kantonalbank Dan Breznitz, Munk Chair of Innovation Studies, University of Toronto Urs Birchler, Professor Emeritus of Banking, University of Zurich Géry Daeninck, former CEO, Robeco Stephen C. Daffron, CEO, Interactive Data Jean Dermine, Professor of Banking and Finance, INSEAD Douglas W.
    [Show full text]
  • The Regulation of Marketplace Lending
    Charlotte 201 South College Street, Suite 1600 Chicago New York 111 West Monroe Street 1270 Avenue of the Americas, 30th Floor Charlotte, NC 28244-0009 Chicago, IL 60603-4080 New York, NY 10020-1708 The Regulation of Marketplace Lending: 980.495.7400 312.845.3000 212.655.6000 Salt Lake City A Summary of the Principal Issues 215 South State Street, Suite 800 San Francisco Washington, DC 595 Market Street, 26th Floor 1717 Rhode Island Avenue NW, Suite 800 Salt Lake City, UT 84111-2339 San Francisco, CA 94105-2839 801.533.0066 Washington, DC 20036-3026 415.541.0500 202.478.6444 September 2020 Update chapman.com THE REGULATION OF MARKETPLACE LENDING: A Summary of the Principal Issues September 2020 Update Marc Franson Peter Manbeck* This document has been prepared by Chapman and Cutler LLP attorneys for information purposes only. It is general in nature and based on authorities that are subject to change. It is not intended as legal advice. Accordingly, readers should consult with, and seek the advice of, their own counsel with respect to any individual situation that involves the material contained in this document, the application of such material to their specific circumstances, or any questions relating to their own affairs that may be raised by such material. The publication and receipt of this document do not constitute legal advice or establish an attorney-client relationship with any person. Attorney advertising material. © 2020 Chapman and Cutler LLP * The authors acknowledge with thanks the contributions of other Chapman and Cutler attorneys to the preparation of this survey, including David Batty, Colman Burke, Besty Chang, Walt Draney, Sara Ghadiri, Tobias Moon, Rossina Petrova, Kathryn Puls, Matt Stone and Greg Xethalis, with special thanks to our Research Services team headed by Sarah Andeen, proofreader Leah Mayes and our Marketing Team headed by Nancy Linder with the able assistance of Rebekah Alm and Claire Wambach.
    [Show full text]
  • THE ALTERNATIVE LENDING REPORT Volume 1, No
    SmallBusinessLending.io Finance • Technology • Legal & Regulatory • Strategy THE ALTERNATIVE LENDING REPORT Volume 1, No. 1 April 20, 2017 input/output GLOVES COME OFF IN COLORADO COMMENTARY ‘TRUE LENDER’ CASES Addressing the Lack of Transparency in Small Company Lending ......................... 2 By Steve Evans STRATEGY “True lender” lawsuits filed in Colorado and Madden v. Midland Funding, LLC, With SBA Budgets on the Chopping highlight the ongoing legal ambiguity of from 2015 as legal authority for claims Block, What’s the Lending marketplace lenders using the bank partner alleging usury and other violations of the Environment Going Forward? ..................... 3 model. The latest dispute began earlier this state’s Uniform Consumer Credit Code. LEGAL & REGULATORY year when Colorado’s attorney general filed Referring to the Madden case, Colo- • Recent Litigation Illustrates complaints in state court against Marlette rado argues that “a bank cannot validly Why Merchant Cash Advances Funding and Avant of Colorado on behalf assign [federal interest rate exportation] Are Not Loans .......................................... 6 of the administrator of the state’s Uniform to a non-bank.” However, in that earlier • Bankrupt NuLook Now Facing RICO Suit ....................................... 8 Consumer Credit Code. Later amended Madden case, the dispute involved the and removed to federal court, the suits sale and assignment of charged-off debt NEW TECHNOLOGY allege violations based on earlier true lender – not loan originations under an ongoing & PRODUCT LAUNCHES and loan assignment cases. According to arrangement between a non-bank lender Platform announcements, new software and services, and notable the complaints, these non-bank companies like Marlette and Avant, and federally product releases. ....................................... 10 are the true lenders because they market insured institutions like Cross River and and service loans originated by New Jersey- WebBank.
    [Show full text]
  • Criminal Complaint
    AO 91 (Rev. 11/11) Criminal Complaint UNITED STATES DISTRICT COURT FILED for the Feb 03 2021 __________ District of __________ Northern District of California SUSANY. SOONG CLERK, U.S. DISTRICT COURT United States of America ) NORTHERN DISTRICT OF CALIFORNIA v. ) OAKLAND ) Case No. 4:21-mj-70194-MAG Christina Burden ) ) ) ) Defendant(s) CRIMINAL COMPLAINT I, the complainant in this case, state that the following is true to the best of my knowledge and belief. On or about the date(s) ofJune 20, 2020 in the county of Alameda in the Northern District ofCalifornia , the defendant(s) violated: Code Section Offense Description 18 U.S.C. 1344 Bank Fraud Maximum Penalties: 30 years imprisonment; $1,000,000 fine; 3 years supervised release; $100 special assessment; forfeiture This criminal complaint is based on these facts: See attached affidavit of TIGTA Agent Alofagia Onciano ’✔ Continued on the attached sheet. /s/ Alofagio Onciano Approved as to form /s/ Abraham Fine______ Complainant’s signature AUSA ABRAHAM FINE Alofagia Onciano, TIGTA Printed name and title Attested to by the applicant in accordance with the requirements of Fed. R. Crim. P. 4.1 by phone. Date: February 3, 2021 Judge’s signature City and state: San Jose, California Hon. Virginia DeMarchi Printed name and title AFFIDAVIT IN SUPPORT OF CRIMINAL COMPLAINT I, Alofagia Onciano, Special Agent, Treasury Inspector General for Tax Administration (“TIGTA”), being duly sworn, hereby state: INTRODUCTION AND AGENT BACKGROUND 1. I submit this affidavit in support of a criminal complaint charging CHRISTINA BURDEN (“BURDEN”) with the crime of bank fraud, in violation of 18 U.S.C.
    [Show full text]
  • Startups Get Snapped Up
    20111205-NEWS--0001-NAT-CCI-CN_-- 12/2/2011 8:44 PM Page 1 P1 V7 horiz INSIDE 40 UNDER TOP STORIES FORTY Food banks are NOMINATIONS overflowing, and EXTENDED UNTIL DEC. 9! not in a good way www.crainsnewyork.com/ ® 40under40 PAGE 2 The sketchy math behind tenants’ VOL. XXVII, NO. 49 WWW.CRAINSNEWYORK.COM DECEMBER 5-11 2011 PRICE: $3.00 Stuy Town buyout PAGE 2 Startups get snapped up NY jumps to No. 2 in flurry of tech M&A, metro region topped $890 million names such as Union Square Ven- in the third quarter,a level of invest- tures—an early backer of Twitter VC activity, but deals still on small side ment that hasn’t been seen since the and online gaming company Zyn- last days of the dot-com bubble, ac- ga—and by a thriving entrepre- from eBay, and urban hipster par- cording to the MoneyTree Report neurial culture, the tech sector here BY MATTHEW FLAMM enting site Babble tapped Disney from PricewaterhouseCoopers and has bucked general business trends for $40 million. Those deals fol- the National Venture Capital Asso- by remaining a bright spot in the Acquisition fever has hit New lowed 35 acquisitions by various ciation, based on data from Thom- city’s economy. What the L? Why York’s bubbling tech scene. Last tech players in the third quarter— son Reuters. That put New York in “It’s a great time for New York,” month, advertising technology up from eight in the year-earlier pe- the No. 2 spot behind Silicon Val- said Linda Gridley, chief executive Billyburg merchants firm interclick sold itself to Yahoo riod, according to CB Insights.
    [Show full text]