Regulation

NJ Legislature Aims to Classify Merchant Cash Advance as a Loan in New Disclosure Bill

October 15, 2018
Article by:

New Jersey Capitol Building in Trenton

S2262 in New Jersey, a bill to require disclosures in small business lending, was amended this afternoon to define merchant cash advances as small business loans for the purposes of disclosure. Banks and equipment leasing companies are exempt from the bill. You can listen to the hearing here. Debate on S2262 begins at the 6 […]

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New Jersey Moves to Regulate Small Business Loan Disclosures and Brokers

October 15, 2018
Article by:

New Jersey Capitol Building in Trenton

A committee within the New Jersey State Senate convened today at 1:30pm to discuss S2262, a new small business loan disclosure bill. Similar to SB1235 in California, this bill would require all of the following on small business loan contracts less than $100,000: The APR (This was removed during the committee hearing) The annualized interest […]

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California Now Requires Mandatory Disclosures on Commercial Finance

October 1, 2018
Article by:

Senator Steve Glazer California

California Governor Jerry Brown has signed SB 1235. As of Jan 1, 2019, commercial finance companies in California will be required to disclose the following on their contracts: (1) The total amount of funds provided. (2) The total dollar cost of the financing. (3) The term or estimated term. (4) The method, frequency, and amount […]

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Renaud Laplanche Barred From the Securities Industry

September 28, 2018
Article by:

LendIt USA 2016

Renaud Laplanche, 1 month before he resigned from LendingClub at the LendIt USA 2016 conference in San Francisco, California, USA on April 11, 2016. (photo by Gabe Palacio) The SEC announced today that it charged LendingClub Asset Management, formerly known as LendingClub Advisors LLC (LCA), and its former president and co-founder Renaud Laplanche, with fraud […]

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Congressman Cleaver’s Findings on Fintech Lending Mixed

August 30, 2018
Article by:

cleaver principles

Congressman Emanuel Cleaver, II from Missouri announced findings earlier this month from a year-long inquiry he initiated into fintech small business lending practices and minorities. His initial inquiry was to determine if merchant cash advance companies had mechanisms in place to avoid discriminatory lending practices.   Cleaver concluded that some common practices in non-bank underwriting […]

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The California Business Loan & MCA Disclosure Bill Has Passed

August 30, 2018
Article by:

Steve Glazer

The bill has passed. With the governor’s signature, all business loan contracts and merchant cash advance contracts in California will soon require a uniform set of formal disclosures including an annualized rate of the total cost. The precise formula for that rate will be determined by the state’s regulatory agency, the Department of Business Oversight. […]

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1st Global Capital Charged With Fraud by SEC

August 29, 2018
Article by:

SEC Building

Securities & Exchange Commission building The Securities & Exchange Commission unsealed a 10-count complaint against 1 Global Capital LLC (“1st Global Capital”), its owner Carl Ruderman, and related parties on Wednesday. The South Florida firm “fraudulently raised more than $287 million from more than 3,400 investors to fund its business offering short-term financing to small […]

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The Seven-Minute Loan Shakes Up Washington And The 50 States

August 19, 2018
Article by:

moneyacrossthecountry

This story appeared in deBanked’s Jul/Aug 2018 magazine issue. To receive copies in print, SUBSCRIBE FREE It takes seven minutes for Kabbage to approve a small-business loan. “The reason there’s so little lag time,” says Sam Taussig, head of global policy at the Atlanta-based financial technology firm, “is that it’s all automated. Our marginal cost […]

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Can Fintech Startups Become Banks? OCC Opens The Gates

August 1, 2018
Article by:

opening of the gates

Yesterday, the U.S. Treasury Department released a report that prompted the Office of the Comptroller of the Currency (OCC) to say that it would start accepting applications from fintech for special purpose national bank charters. This is boon for fintech companies that, until now, have mostly been prevented from applying for national bank charters because […]

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Elevate Explains Why Ohio Payday Law Won’t Hurt Them

July 31, 2018
Article by:

Ken Rees

In Elevate’s Q2 2018 conference call yesterday, Chairman and CEO Kenneth Rees mentioned that Elevate wasn’t worried about an Ohio bill, signed into law yesterday, that places significant restrictions on what payday lenders can do in the state. The Fairness in Lending Act (House Bill 123) will close a loophole that payday lenders have been […]

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