Lobster price – Valona Shrimp http://valonashrimp.com/ Mon, 01 Aug 2022 08:34:16 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://valonashrimp.com/wp-content/uploads/2021/10/icon-120x120.jpg Lobster price – Valona Shrimp http://valonashrimp.com/ 32 32 Buy now, pay later finds growth in healthcare, B2B https://valonashrimp.com/buy-now-pay-later-finds-growth-in-healthcare-b2b/ Fri, 22 Jul 2022 15:32:55 +0000 https://valonashrimp.com/buy-now-pay-later-finds-growth-in-healthcare-b2b/ With inflation driving greater spend introspection, Buy Now Pay Later (BNPL) continues to diversify into new use cases and verticals, building on the fashion industry where it started. From healthcare to B2B applications, installment payments are coming to almost every point on the business compass as businesses experience the advantages offered by BNPL over traditional […]]]>

With inflation driving greater spend introspection, Buy Now Pay Later (BNPL) continues to diversify into new use cases and verticals, building on the fashion industry where it started.

From healthcare to B2B applications, installment payments are coming to almost every point on the business compass as businesses experience the advantages offered by BNPL over traditional trade credit and financing tools.

BNPL for B2B is considered a $1 trillion market.

“It’s a very different approach [from traditional BNPL for businesses],” said Jamie BeaumontCEO of British company BNPL Player, in a May PYMNTS interview. “It’s almost like post-purchase, where we give all the control and optionality over how people pay and how long the terms are to the companies that are paying. That’s obviously a huge benefit for the vendor who also seeks to be paid within 24 hours.

Read more: To avoid failure, BNPL for Business should be customized and not cloned

German Fintech B2B BNPL billy make a deal with Klarna at the end of last year, integrating the two services and allowing merchants already integrated with Klarna for consumer use to switch to the Billie BNPL payment platform for B2B purchases.

“Billie’s newly implemented payment methods can be directly activated by the companies themselves and are seamlessly integrated into Klarna’s payment process,” October 11. Press release declared. “No additional technical steps are required by online retailers.”

Billie Co-founder and co-CEO Matthias Knecht told PYMNTS, “I strongly believe that the need for this type of product is everywhere – it’s just everywhere. You look at the buyers and the challenges that those commercial buyers face, and it’s exactly the same in every country. “

See more : Billie CEO on Becoming the ‘Klarna’ of the B2B Marketplace Buy Now, Pay Later

BNPL’s Third Wave

Healthcare offers another strong use case for installment payments. In “The Payment Cure: How Improving Billing Experiences Impacts Patient Loyalty,” a PYMNTS report with research sponsored by CareCredit33% of patients surveyed said they had not received the health care they needed, citing primarily an inability to pay.

Get the study: The payment cure

According to the study, 41% of users of alternative healthcare payment plans “helped them manage their other bills or expenses. Consumer interest in alternative payment options is high: 45% of all patients would be interested in using these types of payments in the future and 26% say they are ‘very’ or ‘extremely’ interested in these options.”

CareCredit offers a consumer credit product which is not strictly BNPL but provides a line of credit to pay medical bills which is then paid off like any other credit card.

In the education sector, BNPL pure play To affirm funds “nanodegrees” covering various areas of finance and technology for the Udacity learning platform in its “Learn now, pay lateroffers at an average cost of $2,000, with courses and loans to be completed in six months.

Nandan ShethBNPL FinTech CEO Separate ittold PYMNTS in March that this was BNPL’s second wave, as the adaptable concept moves into other areas, transforming the credit landscape, especially for high-ticket purchases including the first wave of FinTechs general public stayed away.

Read more: The third generation of BNPL has the potential to reshape the entire credit industry

“Higher tickets were a bit more difficult for pure games,” Sheth said. “For us, it’s kind of our sweet spot. If you look at our average ticket, it’s almost $1,000. Some of the others are in the $200 range. We’re removing the open to purchase and unlocking that.

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS

About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

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Provide working capital to African SMEs https://valonashrimp.com/provide-working-capital-to-african-smes/ Tue, 19 Jul 2022 21:47:27 +0000 https://valonashrimp.com/provide-working-capital-to-african-smes/ From independents to local shops and restaurants that are the cornerstones of so many communities, small businesses in Africa’s emerging markets need to maintain enough cash to take advantage of growth opportunities or meet challenges. And in the absence of cash, these traders often resort to alternative credit options and business loans to fill the […]]]>

From independents to local shops and restaurants that are the cornerstones of so many communities, small businesses in Africa’s emerging markets need to maintain enough cash to take advantage of growth opportunities or meet challenges.

And in the absence of cash, these traders often resort to alternative credit options and business loans to fill the working capital gap and keep business operations running smoothly.

Read more: FinTechs think big to help African SMEs find working capital

But these solutions aren’t always optimal, which is why a new wave of African startups are pioneering the provision of innovative lending platforms across the region to help small and medium-sized enterprises (SMEs) and individual entrepreneurs maintain sufficient cash.

Sector credit for gig workers

In a region with high unemployment rates, where many people struggle to generate stable incomes, the gig economy framework is reshaping African labor markets. And as it matures, technologies are being developed to build on the core gig ecosystem to better serve the needs of independent entrepreneurs.

Such technology is ImaliPaya working capital solution for gig workers that allows them to pay for the things they need to stay in business using a buy now, pay later (BNPL) credit model.

For example, a gig worker in the transport sector could use the ImaliPay app to finance the purchase of fuel or spare parts by spreading the cost over several installments, instead of having to pay in full up front. ‘advance.

Tatenda Furusa, co-founder and CEO of the company, recently told PYMNTS that the gig economy is “the future of work in the world” and that ImaliPay is positioning itself as “the de facto financial sidekick and the social safety net partner for gig workers around the world”. continent.”

And as workers around the world adapt to an ever-changing gig economy, so does the technology they use. Among the new gig toolbox, solutions to address the working capital gap will be critical to the financial well-being of African gig workers and are essential if the sector is to thrive.

Digitization of community loans

Besides the gig economy, a related but slightly different version of Africa’s micro-entrepreneurship spirit can be seen in the millions of mobile money agents facilitating the flow of hard currency between hard cash. and the mainland’s mobile money wallets.

Sometimes operating in rural areas where most people have a mobile money wallet but are unbanked, agents do not always have access to institutional lines of credit, leading some traders to turn to their friends and their family when needed.

Related: Community Loans Fill Funding Gap for Mobile Money Agents in Africa

For Femi Iromini, founder and CEO of a Nigeria-based startup moni, this sparked a desire to bring the community lending model into the digital age. Beginning as a WhatsApp group for mobile money agents connecting borrowers with lenders, Moni has grown and expanded beyond the initial targeted local community to now provide small loans to mobile money agents at across Nigeria.

While banks traditionally view the microloan market as a high-risk market for very little gain, Moni leverages social trust and group responsibility to mitigate default risk. In fact, as Iromini recently told PYMNTS, the company has been able to achieve an impressive 99% refund rate since launching in 2021.

BNPL for SMEs

As ImaliPay demonstrates, the BNPL lending model can provide an alternative credit framework in the absence of a cash loan or a borrower’s inability to repay credit in full on time.

Nigerian fintech Double is one of the business-to-business (B2B) startups driving growth in the BNPL space.

Read more: BNPL is the working capital bridge for African SMEs

Instead of giving companies money, Duplo co-founder and CEO Yele Oyekola told PYMNTS that their BNPL B2B solution can fund payment of a supplier invoice on behalf of a company, after which the merchant will reimburse according to the conditions offered.

Duplo has established relationships with several Nigerian wholesalers and built a network of retailers who can then buy from the wholesalers, with Duplo acting as a credit intermediary. This way, retailers can keep their cash and maintain liquidity, and wholesalers can offer BNPL without assuming any risk themselves.

For all PYMNTS EMEA coverage, subscribe daily EMEA Newsletter.

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS

About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

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The empires built by Greektown Casino https://valonashrimp.com/the-empires-built-by-greektown-casino/ Thu, 14 Jul 2022 16:29:12 +0000 https://valonashrimp.com/the-empires-built-by-greektown-casino/ Just months before Greektown Casino opened in November 2000, there was a shakeup of the property. In June 2000, Kewadin planned to buy the Gatzaro and Papas’ 40% stake in Monroe Partners after what the Associated Press at the time described as a forced surrender “due to issues uncovered in their background during state-mandated investigations.” […]]]>

Just months before Greektown Casino opened in November 2000, there was a shakeup of the property.

In June 2000, Kewadin planned to buy the Gatzaro and Papas’ 40% stake in Monroe Partners after what the Associated Press at the time described as a forced surrender “due to issues uncovered in their background during state-mandated investigations.” This sale created a 90% ownership structure owned by the Sault Ste. Marie Tribe of the Chippewa Indians and 10% by the remaining local partners, Crain reported at the time.

But Archer was also pushing for more local ownership, so the tribe agreed to sell 10% of that interest, creating an 80-20 structure.

“It put a burden on Greektown from day one due to the significant redemption of interest,” he said. “Before we even built the casino, before we built the hotel, we had a significant inherited debt that we were saddled with that drove a wedge between us and the Sault tribe.”

Documents later filed in federal court say the tribe and local property group were “obligated, directly or indirectly, to pay the installments” to the Gatzaroses and Papases, but by 2004 both groups were in default. of these debts. They then agreed to a discounted cash buyout of $95 million for the Gatzaroses and $55 million for the Papas, with approximately $50 million outstanding.

Jackson noted that around 2005, he and Blackwell sold Barden part of their stake, giving him a 3.8% stake in the casino. The Detroit Free Press reported at the time that the sale was worth $11.4 million.

This became important due to a right of first refusal provision that required the tribe, if it sought to sell the casino, to offer it first to local owner partners. And because Barden had amassed enough wealth from gambling and other business ventures, the local partners would have enough financial firepower to conduct a serious bid to purchase Greektown.

“The tribe didn’t anticipate this maneuver, that we would bring in someone like Don,” Jackson said. “His casinos were smaller than Greektown, but they were successful and he owned games and knew the operational side. He challenged the leadership of the tribe from operational and management opposition. of power but also a position of experience in the industry… At that point, it became somewhat contentious and the relationship deteriorated.”

Barden and other local partners “challenged the tribe and the operators at the time regarding the running of the casino, specifically how (they) marketed the casino to the African-American market,” Jackson said.

After putting a buyout offer from the tribe on the table, Jackson said, the tribe hit back with a buyout offer from local owners, including Barden. They agreed to a four-year buyout, and in the third year, according to Jackson, the tribe received what he called “bad legal advice”.

Messages left for former Tribal Chairman Aaron Payment were not returned.

With a debt to local partners, the Gatzaroses and Papases, and during construction, the tribe filed the casino for Chapter 11 bankruptcy, thinking they could get out of debt while retaining ownership of the casino.

An adjustment plan was approved in January 2010 and Greektown emerged from bankruptcy in June 2010, Crain’s reported at the time. The bankruptcy eliminated about $500 million in debt, CEO Cliff Vallier said in a statement at the time.

Under the terms of the plan, the tribe lost ownership of the casino to a group of secured creditors led by New York-based Merrill Lynch, which had loans secured by liens on the casino property, Crain reported. . The new ownership group was made up of institutional shareholders who were original shareholders known as Greektown Superholdings Inc. and Greektown Newco Sub Inc. It was led by a board that included current Mayor Mike Duggan; Freman Hendrix, former deputy mayor; and Darrell Burks, director of PricewaterhouseCoopers LLP in Detroit.

Three years later, the casino was sold to a subsidiary of Dan Gilbert; he then sold it in 2019 for $1 billion: $700 million for Vici Properties Inc. to buy the property’s land and real estate and $300 million for Penn National Gaming Inc. for the assets of operation.

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Weekly News Roundup – Mettis Global News https://valonashrimp.com/weekly-news-roundup-mettis-global-news/ Sun, 26 Jun 2022 07:19:26 +0000 https://valonashrimp.com/weekly-news-roundup-mettis-global-news/ June 26, 2022: A delegation of majority shareholders of K-Electric representing Aljomaih Holding Company of Saudi Arabia, National Industries Group (NIG) of Kuwait and Infrastructure Growth and Capital Fund (IGCF) visited the Honorable Prime Minister of Pakistan Mian Shehbaz Sharif over the past week. The delegation was led by Sheikh Abdulaziz Aljomaih – Managing Director […]]]>

June 26, 2022: A delegation of majority shareholders of K-Electric representing Aljomaih Holding Company of Saudi Arabia, National Industries Group (NIG) of Kuwait and Infrastructure Growth and Capital Fund (IGCF) visited the Honorable Prime Minister of Pakistan Mian Shehbaz Sharif over the past week.

The delegation was led by Sheikh Abdulaziz Aljomaih – Managing Director of Aljomaih Holding Company, one of Saudi Arabia’s most powerful conglomerates with interests in diversified industries, as well as Riyadh Edrees – CEO of NIG.

Prime Minister Shehbaz Sharif pointed out that he has set up a task force led by former Prime Minister Shahid Khaqan Abbasi to address issues related to K-Electric with a view to improving the electric utility’s cash flow and to diffuse the production of electricity from its power plants. Task force members including Shahid Khaqan Abbasi, Federal Finance Minister Miftah Ismail, Oil Minister Dr. Musadiq Malik and Special Assistant to Prime Minister Ahad Cheema were also present.

The delegation briefed the Prime Minister on the achievements of the public service over the past 17 years. “We have good brotherly relations with Pakistan. This is why we have chosen to invest in the power sector – which is the backbone of any economy – of Karachi, which holds a special place as the financial and industrial center of Pakistan,” Aljomaih stressed. who also served as the company’s first president after privatization. .

“Aljomaih and I have been part of the KE journey since 2005. As a member of the largest investment group in Kuwait, we are ambassadors for Pakistan in investment circles across the GCC. KE’s continued success can help generate interest in the power distribution sector in Pakistan,” said Riyadh Edrees.

After privatization, more than $4 billion was invested in KE’s value chain, enabling it to modernize power infrastructure, including the addition of new power plants. Operational improvements since privatization have resulted in savings of USD 5 billion for the Treasury. Today, the company has doubled the number of its customers, delivered twice as many units of energy and halved transmission and distribution losses compared to 2005.

Investors further informed that the success of the transformation has attracted investors like Shanghai Electric Power (SEP), one of the major players in the global energy sector. However, the acquisition process – which was officially launched in 2016 – has stalled due to unresolved issues, they said.

The delegation also expressed concerns about growing industry challenges affecting KE’s financial viability. The delegation sought the Prime Minister’s support in resolving long-standing issues such as the Power Purchase Agreement (PPA) and historical contribution arbitration between KE and various government entities, which are deterrents to the sale of the majority shares of KE.

The group of investors was joined by Mark Skelton, Director of Infrastructure Growth Capital Fund, Shan Ashary, Chairman of the Board of KE, and Syed Moonis Abdullah Alvi, CEO of K-Electric.

The delegation also visited Dr. Shahid Khaqan Abbasi, Minister of Energy (Energy Division) Khurram Dastgir, as well as Tauseef H. Farooqi, Chairman of the National Electric Power Regulatory Authority ( NEPRA).

During the meetings, KE investors recognized the importance of Pakistan as an investment destination. They expressed that given the historical ties and brotherly relations between the Gulf countries and Pakistan, the investment was made at a time when the government was actively seeking investment in the power sector. The delegation also reiterated its strong commitment to solving the challenges and securing the city’s energy future, which is inevitable for the country’s prosperity.

KE has 3.2 million customers while T&D losses have been reduced to 15.8% today from 34.2% in fiscal 2005. On the production front, KE added 5 efficient power generation plants and fleet efficiency increased from 25% in 2005 to 38% in 2021.

Press release

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Lokyata Announces Systems Integration with Infinity Software, Bringing Enhanced Loan Decision Capabilities to Lending Institutions https://valonashrimp.com/lokyata-announces-systems-integration-with-infinity-software-bringing-enhanced-loan-decision-capabilities-to-lending-institutions/ Fri, 24 Jun 2022 02:01:57 +0000 https://valonashrimp.com/lokyata-announces-systems-integration-with-infinity-software-bringing-enhanced-loan-decision-capabilities-to-lending-institutions/ WASHINGTON–(BUSINESS WIRE)–#banking—Lokyataa company specializing in providing products that digitize, automate and adapt lenders’ credit decisions, announced that its real-time automated credit decision tool, BankAnalysisis now integrated into infinite software. Infinity Software has been providing software solutions to direct-to-consumer lenders for 20 years and has enabled over 700 businesses to centralize their lending operations through a […]]]>

WASHINGTON–(BUSINESS WIRE)–#bankingLokyataa company specializing in providing products that digitize, automate and adapt lenders’ credit decisions, announced that its real-time automated credit decision tool, BankAnalysisis now integrated into infinite software.

Infinity Software has been providing software solutions to direct-to-consumer lenders for 20 years and has enabled over 700 businesses to centralize their lending operations through a single platform. Infinity offers website design, optimized loan agreements, automated underwriting waterfalls, accurate localization, and a variety of consumer loan products. Its configurable loan product engine further helps clients maximize revenue with advanced accounting and reporting, an integrated collections suite, and anti-theft access controls.

Through API API integration with Lokyata, Infinity Software customers will have access to additional and valuable loan decision data and insights, including analysis of bank statements authorized by the customer, such as the average monthly net income; The minimum balance; Average monthly loan payments; and Notifications of Insufficient Funds (NSF). Additionally, lenders will be able to easily set up automatic funding and denial rules, further streamlining the loan decision process.

“Infinity has worked with hundreds of vendors to meet the needs of lenders in our space,” said Shannon Lee, chief product officer at Infinity. “Lokyata has proven to have a unique product that helps lenders better meet the needs of underserved borrowers and grow their business in a responsible and innovative way.”

“At Lokyata, we are always looking to work with market innovators and Infinity Software demonstrates the value of modern, scalable technology in an evolving lending ecosystem,” said Steve Bireley, CTO at Lokyata. “Increasingly, lenders are looking for ways to responsibly help more consumers access credit, and through tools like BankAnalyze and Infinity Software’s platform, more lenders are achieving that goal with hit.”

About infinity

Infinity is the leading alternative credit lending LMS and has been serving the industry for 20 years. Lenders on the Infinity platform have the ability to automate day-to-day tasks such as loan underwriting, payment processing, and debt collection. Infinity offers a wide range of loan products, such as installment loans, lines of credit and short-term consumer loans. Authorized to work with state-registered lenders and tribal lenders, Infinity does business in the United States and Canada. Infinity is constantly innovating and improving to better pursue its mission of “giving lenders the freedom to grow”. For more information, visit www.infinitysoftware.com or email [email protected]

About Lokyata

Lokyata’s global headquarters are in Washington DC with offices in Europe, India and Latin America to serve its global customer base of banks, non-bank financial companies, credit bureaus and fintech lenders. Lokyata’s deep experience in lending and credit risk, combined with a strong practice of data science, a pragmatic approach to data strategy, and a scalable AI-powered platform, deliver results. measurable in terms of increased loan approval rates, lower default rates and improved financial margins. For more information, visit www.lokyata.ai or email [email protected].

contacts

Heather Mc Daniel

[email protected]
678-781-7204

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Lokyata Announces Systems Integration with Infinity Software, Bringing Enhanced Loan Decision Capabilities to Lending Institutions https://valonashrimp.com/lokyata-announces-systems-integration-with-infinity-software-bringing-enhanced-loan-decision-capabilities-to-lending-institutions-2/ Thu, 23 Jun 2022 07:00:00 +0000 https://valonashrimp.com/lokyata-announces-systems-integration-with-infinity-software-bringing-enhanced-loan-decision-capabilities-to-lending-institutions-2/ WASHINGTON–(BUSINESS WIRE)–Lokyataa company specializing in providing products that digitize, automate and adapt lenders’ credit decisions, announced that its real-time automated credit decision tool, BankAnalysisis now integrated into infinite software. Infinity Software has been providing software solutions to direct-to-consumer lenders for 20 years and has enabled over 700 businesses to centralize their lending operations through a […]]]>

WASHINGTON–(BUSINESS WIRE)–Lokyataa company specializing in providing products that digitize, automate and adapt lenders’ credit decisions, announced that its real-time automated credit decision tool, BankAnalysisis now integrated into infinite software.

Infinity Software has been providing software solutions to direct-to-consumer lenders for 20 years and has enabled over 700 businesses to centralize their lending operations through a single platform. Infinity offers website design, optimized loan agreements, automated underwriting waterfalls, accurate localization, and a variety of consumer loan products. Its configurable loan product engine further helps clients maximize revenue with advanced accounting and reporting, an integrated collections suite, and anti-theft access controls.

Through API API integration with Lokyata, Infinity Software customers will have access to additional and valuable loan decision data and insights, including analysis of bank statements authorized by the customer, such as the average monthly net income; The minimum balance; Average monthly loan payments; and Notifications of Insufficient Funds (NSF). Additionally, lenders will be able to easily set up automatic funding and denial rules, further streamlining the loan decision process.

“Infinity has worked with hundreds of vendors to meet the needs of lenders in our space,” said Shannon Lee, chief product officer at Infinity. “Lokyata has proven to have a unique product that helps lenders better meet the needs of underserved borrowers and grow their business in a responsible and innovative way.”

“At Lokyata, we are always looking to work with market innovators and Infinity Software demonstrates the value of modern, scalable technology in an evolving lending ecosystem,” said Steve Bireley, CTO at Lokyata. “Increasingly, lenders are looking for ways to responsibly help more consumers access credit, and through tools like BankAnalyze and Infinity Software’s platform, more lenders are achieving that goal with hit.”

About infinity

Infinity is the leading alternative credit lending LMS and has been serving the industry for 20 years. Lenders on the Infinity platform have the ability to automate day-to-day tasks such as loan underwriting, payment processing, and debt collection. Infinity offers a wide range of loan products, such as installment loans, lines of credit and short-term consumer loans. Authorized to work with state-registered lenders and tribal lenders, Infinity does business in the United States and Canada. Infinity is constantly innovating and improving to better pursue its mission of “giving lenders the freedom to grow”. For more information, visit www.infinitysoftware.com or email nwilson@infinityels.com

About Lokyata

Lokyata’s global headquarters are in Washington DC with offices in Europe, India and Latin America to serve its global customer base of banks, non-bank financial companies, credit bureaus and fintech lenders. Lokyata’s deep experience in lending and credit risk, combined with a strong practice of data science, a pragmatic approach to data strategy, and a scalable AI-powered platform, deliver results. measurable in terms of increased loan approval rates, lower default rates and improved financial margins. For more information, visit www.lokyata.ai or email jd@lokyata.com.

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CFPB deputy director attacks ‘bank rental systems’ | Troutman pepper https://valonashrimp.com/cfpb-deputy-director-attacks-bank-rental-systems-troutman-pepper/ Wed, 22 Jun 2022 07:00:00 +0000 https://valonashrimp.com/cfpb-deputy-director-attacks-bank-rental-systems-troutman-pepper/ In a keynote address to the Consumer Federation of America’s Consumer Assembly 2022, CFPB Deputy Director Zixta Martinez squarely took aim at “bank leasing programs” in some of the first (if not the first) such comments from a senior CFPB official. Historically, the CFPB has been limited to “true lender” litigation against participants in high-rate […]]]>

In a keynote address to the Consumer Federation of America’s Consumer Assembly 2022, CFPB Deputy Director Zixta Martinez squarely took aim at “bank leasing programs” in some of the first (if not the first) such comments from a senior CFPB official. Historically, the CFPB has been limited to “true lender” litigation against participants in high-rate programs involving Native American tribal parties (not banks) already challenged by state authorities. We view Deputy Director Martinez’s comments as potentially signaling a broader pursuit of this theory by the CFPB.

In her remarks, Ms. Martinez referred to an increase in installment loans and lines of credit with lenders who supposedly “try to use [relationships with banks] to evade state interest rate caps and licensing laws by pretending that the bank, rather than the non-bank, is the lender. Notably, Ms. Martinez appears to have accepted the premise that the non-bank participant in these programs is the “true lender.”

Additionally, Ms Martinez went on to criticize the “unusually high default rates” on these loans, “which raise questions about whether their products fail borrowers.” This comment echoes the philosophy of the “mandatory underwriting provisions” of the CFPB rule on paydays, vehicle title, and certain high-rate installment loans (provisions revoked by the Trump-era CFPB) and UDAAP says the CFPB had previously asserted in cases involving ITT and Corinthian Colleges, which state attorneys general began creating soon after the subprime mortgage crisis.

Finally, Ms Martinez added, without specifying the nature or frequency of the complaints, that the CFPB database reveals “a series of other significant consumer protection problems with certain loans associated with banking partnerships”. She promised the CFA that “we are looking closely” at these partnerships.

We take Deputy Director Martinez’s speech to the CFA as an important indicator of CFPB priorities, and in particular, the shift in emphasis on criticism of rent-a-bank deals. These comments may suggest that the CFPB is poised to follow in the footsteps of state attorneys general and state financial services regulators in asserting “true lender” claims against non-bank parties in these relationships.

We will continue to closely monitor these developments and their implications for players in the consumer financial services industry, including lenders, service providers and banks.

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Bank/non-bank partnerships could come under CFPB scrutiny https://valonashrimp.com/bank-non-bank-partnerships-could-come-under-cfpb-scrutiny/ Mon, 20 Jun 2022 15:53:02 +0000 https://valonashrimp.com/bank-non-bank-partnerships-could-come-under-cfpb-scrutiny/ Delivery the opening speech Last week at the Consumer Federation of America’s 2022 Consumer Assembly, CFPB Deputy Director Zixta Martinez said the CFPB is “looking closely” at rent-a-bank programs. Assistant manager Martinez said that “[s]some lenders attempt to use [relationships with banks] to evade state interest rate caps and licensing laws by pretending that the […]]]>

Delivery the opening speech Last week at the Consumer Federation of America’s 2022 Consumer Assembly, CFPB Deputy Director Zixta Martinez said the CFPB is “looking closely” at rent-a-bank programs.

Assistant manager Martinez said that “[s]some lenders attempt to use [relationships with banks] to evade state interest rate caps and licensing laws by pretending that the bank, rather than the non-bank, is the lender. She said “lenders employing bank leasing programs have unusually high default rates, raising questions about whether their products fail borrowers.” She said the CFPB’s consumer complaints database “reveals a range of other significant consumer protection issues with certain loans associated with banking partnerships.”

To date, the CFPB’s enforcement action has only raised “renting a charter” issues in the context of tribal lending, notably in its enforcement action against CashCall. The CFPB lawsuit broke ground by asserting UDAAP violations based on CashCall’s efforts to collect loans allegedly void in whole or in part under state law. The CFPB complaint alleged that the loans in question, which were made by a tribal-affiliated entity, were void in whole or in part under state law because, based on the substance of the transactions , CashCall was the “de facto” or “true” lender and as such charged excessive interest and/or failed to obtain the required license.

The district court agreed with the CFPB that since CashCall was the “true lender” of the loans, the tribe affiliated with the loans did not have a sufficient relationship with the loans for the court to enforce the tribal choice provision. law in loan agreements. and there was no other reasonable basis for the choice of tribal laws. As a result, the district court found that CashCall engaged in a deceptive practice within the meaning of the CFPA when servicing and collecting the loans by creating the false impression that the loans were enforceable and borrowers were obligated to repay. loans in accordance with the terms of their loan agreements.

On appeal, the Ninth Circuit ruled that the district court was correct in refusing both to give effect to the choice of law provision and to apply the law of the borrowers’ home states, thereby resulting in the invalidity of loans. He described the role of the tribal entity in the transactions as “economically non-existent” and having “no purpose other than to give the impression that the transactions were related to the tribe”. According to the Ninth Circuit, “the only reason the parties chose to [tribal] right [in the loan agreements] was to pursue CashCall’s plan to avoid state usury and licensing laws.

It should be noted, however, that the Ninth Circuit expressly rejected the use of a “genuine lender” theory as the basis for its decision. In response to CashCall’s objection to the district court’s finding that it was the “true lender” of the loans, the Ninth Circuit said that “[t]To the extent that CashCall invokes cases involving banks, we note that banks present different considerations because federal law prevents certain state restrictions on the interest rates charged by banks. Commenting that “[w]We do not consider how the result here might differ if [the tribal entity] had been a bank”, the Ninth Circuit said that “we need not employ the concept of ‘genuine lender’, much less establish a general test for identifying a ‘genuine lender’. “In his view, for the purposes of the choice of law issue, it was sufficient to consider the “economic reality” of loans which “reveal[ed] that the tribe had no substantial connection to the transactions.

More importantly, the Ninth Circuit rejected CashCall’s argument that a finding of deceptive practice under the CFPA could not be based on deception about state law. She found no support for the CFPA’s argument and noted that while the CFPA prohibits the establishment of a national attrition rate, the CFPB had not done so in Call for funds because each state’s usury and licensing laws still applied.

Ms. Martinez’s comments raise the possibility that the CFPB is now trying to use the UDAAP outside the tribal context to challenge non-banks involved in banking partnerships alleging violations of state usury and laws on licensing based on the theory that the partnership is a “rent-banking scheme. However, since many of the banks involved in such partnerships are smaller banks over which the CFPB has no authority supervisory or enforcement (i.e. banks with $10 billion or less in assets), the CFPB should manage potential concerns that the FDIC, the primary federal banking regulator, might have if the CFPB had to challenge such partnerships.

Non-bank/bank partnerships are currently under siege in several directions. Four Democratic members of the California state legislature recently sent a letter to the FDIC urging the agency to take action against FDIC-supervised banks that partner with non-bank lenders to offer installment loans. at high cost. On June 1, 2022, a class action lawsuit was filed against fintech lender Opportunity Financial, LLC (OppFi) in a federal district court in Texas in which the named plaintiff alleges that OppFi engaged in a “rent- a-bank” with a state-chartered bank to provide loans at rates higher than allowed by Texas law. OppFi is also engaged in litigation in California state court where the California Department of Financial Protection and Innovation is trying to apply California usury law to loans made under the partnership of OppFi with a state-chartered bank alleging that OppFi is the “true lender” on the loans.

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What’s really going on with revolving consumer credit? https://valonashrimp.com/whats-really-going-on-with-revolving-consumer-credit/ Wed, 08 Jun 2022 04:02:49 +0000 https://valonashrimp.com/whats-really-going-on-with-revolving-consumer-credit/ Beyond some of the dodgy stuff in the headlines today. By Wolf Richter for WOLF STREET. Revolving credit balances in April, unadjusted for seasonality — so actual dollar balances — were $1.04 trillion, according to the Federal Reserve this afternoon. This includes credit card balances, personal loans, etc., and was up just 2.6% from April […]]]>

Beyond some of the dodgy stuff in the headlines today.

By Wolf Richter for WOLF STREET.

Revolving credit balances in April, unadjusted for seasonality — so actual dollar balances — were $1.04 trillion, according to the Federal Reserve this afternoon. This includes credit card balances, personal loans, etc., and was up just 2.6% from April 2019.

Let that sink in for a moment: over a three-year period, revolving credit grew by only 2.6%, despite CPI inflation of 13% over those three years. In other words, revolving credit growth fell sharply in inflation-adjusted terms.

The huge dip between 2019 and today stems from the pandemic when consumers used their stimulus money to pay off their credit cards and when they cut spending on discretionary services, such as sporting and entertainment events, international travel or elective healthcare services such as cosmetic surgery. , visits to the dentist, etc. During this period, delinquencies dropped to record lows.

Revolving loan balances are barely above the highs of 2007 and 2008, despite 14 years of population growth and 40% CPI inflation in those years! In other words, revolving credit just isn’t the kind of problem it was in 2008. It’s a sideshow.

In terms of growth – in terms of additional borrowed money being spent in the economy – it was miniscule. There has actually been no growth since December. And after refunds in January and February, following the annual holiday shopping spree, total balances rose just $14 billion in March and $17 billion in April, for a total of 31 billions of dollars.

That $31 billion growth in March and April didn’t even offset the $32 billion in refunds in January and February. These are actual dollars, not seasonally adjusted notional dollars.

In terms of adding to the growth of the economy: total consumer spending is currently growing at an annual rate of $17 trillion, with a T. So what would be the additional spending growth resulting from the increase in revolving credit? It was a rhetorical question. It’s tiny.

Since 2019, consumer spending has increased by 19% and revolving credit has only increased by 2.9%, both non-inflation-adjusted by 13% over the period. In other words, revolving credit growth has been significantly below inflation and massively below consumer spending growth.

This shows that consumers rely less on revolving credit.

Credit cards and some types of personal loans, such as payday loans, are the most expensive forms of credit, and they often come with usurious interest rates. Credit card rates can exceed 30%. And the Americans have understood this. If they need to finance purchases, many consumers resort to cheaper loans, including cash refinancing of their mortgages.

And a lot of consumers are using their credit cards as payment methods, and they’re paying them back every month. This is what these relatively low balances show.

The beautiful seasonal adjustments.

Seasonal adjustments to the real dollar revolving credit balances are designed to correspond to the peak month of each year, which is December. In other words, there is no seasonal adjustment for December, but the other 11 months are always adjusted upwards, like every month was December at the height of the holiday shopping frenzy. And that creates the bizarre pattern where, for 11 months of the year, seasonal adjustments grossly overestimate the actual revolving credit balances.

In this graph, the green line represents the seasonally adjusted balances. Note how it overlaps every December. The red line represents actual balances, not seasonally adjusted. And note the crazy disconnect between the two lines over the past four months:

The consumer credit data the Federal Reserve released today was its limited monthly set, just two incomplete summary categories of a complex phenomenon: “revolving credit,” which I discussed above, and “non-revolving credit”, which is made up of car loans and student loans combined, but not separated, and does not include mortgages, HELOCs and other debts.

Individual car loan, student loan, mortgage and HELOC categories are only published quarterly by the New York Fed, and I’ve discussed that for the first quarter, covering all categories, including mortgages and HELOCs, and delinquency rates for each category, as well as collections, foreclosures, and third-party bankruptcies, as part of my quarterly review of consumer credit in America.

This quarterly data shows credit card balances by themselves, as well as other revolving consumer loans:

  • Credit card balances, at $840 billion in Q1, are back to where they were in Q1 2008 and lower in Q1 2020 and Q1 2019 (red line).
  • Other consumer loans (personal loans, personal loans, etc.), at $450 billion, were below levels well before the financial crisis (green line):

In other words, revolving consumer credit was roughly flat 13 years ago, despite 13 years of population growth and 40% inflation. In real and per capita terms, it has become a sideshow.

Of course, some people are in over their heads and they will fall behind. It always happens. But in the overall spectrum of credit risk, that’s not a big deal anymore. Consumers have become much smarter since the financial crisis. They borrow through much cheaper mortgages and car loans, and proportionally much less at those rip-off rates that come with credit cards and personal loans.

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The Ninth Circuit denies CashCall’s challenge to the constitutionality of the CFPB, asserts liability for CashCall and its CEO for CFPA violations, and remands the case to the district court to reevaluate the amount of the civil penalty and reconsider the denial of restitution | Ballard Spahr LLP https://valonashrimp.com/the-ninth-circuit-denies-cashcalls-challenge-to-the-constitutionality-of-the-cfpb-asserts-liability-for-cashcall-and-its-ceo-for-cfpa-violations-and-remands-the-case-to-the-district-court-to-reeval/ Fri, 03 Jun 2022 15:02:39 +0000 https://valonashrimp.com/the-ninth-circuit-denies-cashcalls-challenge-to-the-constitutionality-of-the-cfpb-asserts-liability-for-cashcall-and-its-ceo-for-cfpa-violations-and-remands-the-case-to-the-district-court-to-reeval/ The United States Court of Appeals for the Ninth Circuit, in CFPB versus CashCalldismissed CashCall’s constitutional challenge, upheld the district court’s finding that the defendant companies and its CEO were liable for engaging in deceptive practices in violation of the CFPA in connection with CashCall’s tribal loan program , ordered the district court to reassess […]]]>

The United States Court of Appeals for the Ninth Circuit, in CFPB versus CashCalldismissed CashCall’s constitutional challenge, upheld the district court’s finding that the defendant companies and its CEO were liable for engaging in deceptive practices in violation of the CFPA in connection with CashCall’s tribal loan program , ordered the district court to reassess the amount of the civil penalty using a higher level and set aside the district court’s denial of restitution.

The CFPB lawsuit against CashCall, several related companies and Paul Reddam, CEO of CashCall, was originally filed in 2013 in the Federal District Court of Massachusetts. The CFPB alleged that the defendants engaged in deceptive acts and practices in violation of the CFPA as a result of their efforts to collect loans allegedly void in whole or in part under state law because the lender has charged excessive interest and/or failed to obtain the required license. . The companies allegedly funded, purchased, managed and collected high-rate installment loans online from a tribe-affiliated lender that the CFPB did not prosecute. The case was later transferred to a federal district court in California.

In 2016, the California Federal District Court Grants CFPB’s Motion for Partial Summary Judgment and held that since CashCall was the “true lender” of the loans, the defendant companies had engaged in a deceptive practice within the meaning of the CFPA when servicing and collecting the loans by creating the false impression that the loans were enforceable and that borrowers were required to repay the loans in accordance with the terms of their loan agreements. The district court also ruled that Mr. Reddam was individually liable under the CFPA because he participated directly in and had the ability to control the conduct of the corporate defendants. In 2018, following a trial en banc on appropriate remedies for the defendants’ CFPA violations, the district court denied the CFPB’s request for $235 million in restitution and a $51 million fine. dollars, and instead awarded a fine of $10.3 million, using the first tier penalty amount for violations that are neither reckless nor knowing.

The Ninth Circuit initially rejected the defendants’ argument that the CFPB lacked the power to sue because of the unconstitutional limit on the president’s power to remove the CFPB director. Resting on Collins vs. Yellin in which the United States Supreme Court ruled that an unconstitutional removal restriction did not invalidate the agency’s action as long as the head of the agency was properly named, the Ninth Circuit ruled that the relief measure The execution had been validly deposited under the director Corday. As an alternative basis for challenging the constitutionality of the CFPB, the defendants argued that the funding of the CFPB violates the constitutional separation of powers by violating the appropriations clause. In accordance with Dodd-Frank, the CFPB receives its funding through requests from the CFPB director to the Federal Reserve rather than through the congressional appropriations process. Because CashCall had not raised the argument “until long after the closing argument”, the Ninth Circuit declined to consider it.

Moving on to the merits, the Ninth Circuit determined that “[the tribal entity’s] involvement in transactions was economically non-existent and had no purpose other than to make the transactions appear to be related to the tribe. According to the Ninth Circuit, “the only reason the parties chose to [tribal] right [in the loan agreements] was to pursue CashCall’s plan to avoid state usury and licensing laws. The Ninth Circuit found that the District Court was correct in refusing both to give effect to the choice of law provision and to apply the law of the borrowers’ home states, thereby invalidating the loans.

The Ninth Circuit rejected CashCall’s attempt to invoke the doctrine of validity when made, stating that the loans “were not valid when made as there had never been a basis for applying tribal law in the first place, and they were invalid under the applicable laws of the borrower’s home states. (emphasis included). In response to CashCall’s objection to the district court’s finding that it was the “true lender” of the loans, the Ninth Circuit said that “[t]To the extent that CashCall invokes cases involving banks, we note that banks present different considerations because federal law prevents certain state restrictions on the interest rates charged by banks. Commenting that “[w]We do not consider how the result here might differ if [the tribal entity] had been a bank”, the Ninth Circuit said that “we need not employ the concept of ‘genuine lender’, much less establish a general test for identifying a ‘genuine lender’. “In his view, for the purposes of the choice of law issue, it was sufficient to consider the “economic reality” of loans which “reveal[ed] that the tribe had no substantial connection to the transactions.

The court also rejected CashCall’s argument that a deceptive practice finding under the CFPA could not be based on deception about state law. He found no support for the CFPA’s argument and noted that while the CFPA prohibits the establishment of a national attrition rate, the CFPB had not done so here because the laws on wear and individual state licenses still applied.

Other important decisions of the Ninth Circuit were:

  • Finding that the district court’s finding that CashCall did not act recklessly was patently erroneous, the Ninth Circuit set aside the level one penalty imposed by the district court and remanded with instructions to reevaluate it for the period commencing in September 2013 using the higher level two sentence. this requires a statement of carelessness. Based on its review of the facts, the Ninth Circuit concluded that as of September 2103, the danger of CashCall’s conduct violating the CFPA was “so evident that [CashCall] should be aware of it.’ (quotes omitted)
  • The District Court did not err in holding Mr. Reddam personally liable. It was undisputed that Mr. Reddam had the power, as CEO, to control the actions of CashCall. The Ninth Circuit rejected Mr. Reddam’s attempt to rely on counsel’s advice to show that he lacked the mental state necessary for personal liability and concluded that because continuing to recover loans after 2013 was reckless, he qualified for individual responsibility.
  • Finding that the District Court erroneously relied on its findings that CashCall did not act in bad faith and that consumers benefited from their bargain, the Ninth Circuit reversed the District Court’s denial of restitution and sent him back for further examination. With respect to bad faith, the Ninth Circuit advised that scienter is not required for restitution compensation because such a requirement would defeat Congress’s purpose of compensating consumers who have suffered harm. due to CashCall’s deceptive practices. He also said the district court “misunderstood the nature of CashCall’s deceptive practice” by using consumers’ receipt of their market profit as a reason for denying restitution. With respect to the district court’s decision that the CFPB had failed to establish the appropriate amount of restitution because the proposed amount of restitution had to be deducted to account for expenses, the Ninth Circuit found this approach inconsistent with its precedent which allows restitution to be measured by the total amount lost by consumers (i.e. net income) rather than by the profits of the defendant. The Ninth Circuit described “net revenue” as generally the amount consumers paid for the product or service minus any refunds or chargebacks. He distinguished a net income award from a net profit award that allows a defendant to deduct expenses and concluded the decision by stating that “net income may overestimate CashCall’s unfair earnings, but if that is the case, it was up to CashCall to prove.” (The Ninth Circuit, however, emphasized that it was not arguing that restitution was necessarily appropriate.)

[View source.]

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