As we approach the two-year anniversary of the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the scope and costs of fraud in connection with its relief programs continues to mount. To date, the Department of Justice has brought criminal charges against over 1,000 defendants with alleged losses exceeding $1.1 billion; seized over $1 billion in Economic Injury Disaster Loan proceeds; and initiated over 240 civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.… Continue Reading
Supreme Court invalidates DHS Rescission of DACA Program: Implications for Payday Lenders
By Ballard CFS Group on
Posted in Litigation and Court Decisions, Payday Lending
In an opinion authored by Chief Justice Roberts (the “DACA Opinion”), the Supreme Court has concluded that the rescission of the DACA program by the U.S. Department of Homeland Security (DHS) was arbitrary and capricious and hence in violation of the Administrative Procedure Act (APA). Several clients have asked whether the decision bodes ill for the CFPB’s anticipated rescission of the mandatory underwriting (that is, ability to repay) provisions of its payday lending rule.… Continue Reading
CFPB issues guidance on compliance with ECOA/Reg B notice requirements for PPP loan applications
By Lori J. Sommerfield on
On May 6, 2020, the CFPB issued an ECOA/Regulation B “Compliance Aid” containing three FAQs that clarify certain issues related to notification of action taken on Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan applications. We understand that the Bureau provided the guidance in response to inquiries from banking trade associations on behalf of their members concerning technical compliance with Regulation B in managing the large influx of PPP loan applications.… Continue Reading