Regulation

That’s All Folks! COJ Ban in New York May Pass on Wednesday

June 17, 2019
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The New York legislature has until Wednesday night to pass two bills that would prohibit the use of COJs, one on out-of-state debtors entirely and the other from being used as a condition in a financial contract. Either or both would effectively outlaw their use in the small business finance industry in New York State. […]

Senator Elizabeth Warren Questions Federal Agencies About Discrimination in Fintech Lending

June 12, 2019
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Senator Elizabeth Warren and colleague Senator Doug Jones (D-AL) addressed a letter to multiple federal agencies this week to inquire about their individual roles in overseeing fintech, particularly as it pertains to potential discriminatory underwriting. The senators cited a UC Berkeley study that examined discrimination in the era of algorithmic underwriting. “With algorithmic credit scoring,” […]

One New York COJ Bill Moves Forward

June 5, 2019
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A bill that would prevent companies from using Confessions of Judgment against out-of-state debtors is progressing through the New York Assembly. A07500 cleared the judiciary committee on Tuesday despite some Republican opposition. The milestone comes as no surprise as the judiciary committee chair, Assemblymember Jeffrey Dinowitz, is also the bill’s sponsor. Assemblymembers Niou, DenDekker, Wright, […]

Lawyers: Earn CLE Credits While Learning About Alternative Finance

May 23, 2019
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REGISTER HERE June 13 Sessions June 14 Sessions Case Law Updates Regulatory Download: The Complete Picture TCPA: Defining ATDS, Exploring the TCPA and How Emails are Covered Legislation, Business and Lobbying: How does it work and Does it work at all? Bankruptcy Updates Future Invoice Factoring and Traditional Factoring: Can’t We All Just Get Along? […]

FTC Forum on Small Business Financing & Merchant Cash Advances

May 7, 2019
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United States Federal Trade Commission

RECORDING BELOW At the FTC Forum on Small Business Financing & Merchant Cash Advances this morning, FTC regulators asked questions of a panel of industry representatives about controversial topics, including the use of COJs. Below are some closely paraphrased responses.   On Confessions of Judgment (COJs) Scott Crocket, Founder & CEO, Everest Business Funding The […]

SEC Finding Said that Prosper Misled Investors

April 22, 2019
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Prosper Marketplace

From approximately July 2015 until May 2017, Prosper excluded certain non-performing loans from its calculation of annualized net returns that it reported to its investors, according to an SEC order released last Friday. The order found that Prosper reported overstated annualized net returns to more than 30,000 investors on individual account pages on Prosper’s website […]

Lots of Tech Buzzwords, Scary Problems

April 16, 2019
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End of the word fintech?

advanced machine-learning, algorithms, big data, streamlined, technology, consumer-friendly A federal regulator cut through the shield of fintech buzzwords on Monday when it announced that a darling of online lending valued at $2 billion, failed to properly handle rudimentary loan practices. The lender is Chicago-based Avant, who reportedly settled with the FTC for $3.85 million. According […]

New Jersey Bill Seeks to Eliminate Quick Easy Access to Small Business Loans

March 21, 2019
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New Jersey Capitol Building in Trenton

The speed at which a small business owner can access capital to grow and create jobs in New Jersey is too dangerous and must be stopped. This is the takeaway from a bill (S3617) proposed by New Jersey State Senator Nellie Pou that calls for a minimum 3-day waiting period between when contract terms are […]

New York Legislators Introduce Small Business Usury Bill

February 20, 2019
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brainstorming

Two members of the New York State legislature have introduced a bill to apply consumer usury protections to small businesses. Bill A03638, introduced by New York Assemblymembers Yuh-Line Niou and Crystal Peoples-Stokes define a small business as “one which is resident in this state, independently owned and operated, not dominant in its field and employs […]

New Jersey MCA & Business Loan Disclosure Bill Update (S2262)

February 6, 2019
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new jersey

Bill S2262 in the New Jersey State Senate mandating disclosures on MCA and business loan contracts, was amended last week. In its current form, the bill, if it became law, would require MCA providers to disclose: the total dollar costs to be charged to a small business concern, assuming the small business concern delivers all […]

New York Introduces Bill to Ban COJs in Financial Contracts

February 4, 2019
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New York Assembly

New York Assemblymembers Yuh-Line Niou and Crystal Peoples-Stokes have introduced a bill that would prohibit Confessions of Judgment (COJs) from being used in any contract or agreement for a financial product or service. Peoples-Stokes’ district was one of the first districts to boycott COJs originated by merchant cash advance companies after Erie County Clerk Michael […]

Get The Affidavit or Waive It? Examining Confessions of Judgment

February 1, 2019
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cojs

This story appeared in deBanked’s Jan/Feb 2019 magazine issue. To receive copies in print, SUBSCRIBE FREE Caton Hanson, the chief legal officer and co-founder of the online credit-reporting and business-to-business matchmaker Nav, says that his Salt Lake City-based company would not associate with a small-business financier that included “confessions of judgment” in its credit contracts. […]

How an SBA Lender is Managing Through the Shutdown

January 10, 2019
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Everett Sands

Everett Sands, CEO, Lendistry As a result of the U.S. government shutdown that started on December 22 of last year, hundreds of thousands of government employees have been working without pay. The shutdown has also temporarily stopped the Small Business Administration (SBA), a government agency, from operating. This means that obtaining an SBA loan, which […]

Less Than Perfect — New State Regulations

December 21, 2018
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rules and regulations

This story appeared in deBanked’s Nov/Dec 2018 magazine issue. To receive copies in print, SUBSCRIBE FREE You could call California’s new disclosure law the “Son-in-Law Act.” It’s not what you’d hoped for—but it’ll have to do. That’s pretty much the reaction of many in the alternative lending community to the recently enacted legislation, known as […]

Senate Bill Introduced to Ban Confession of Judgments Nationwide

December 6, 2018
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Senator Marco Rubio

Senators Sherrod Brown and Marco Rubio have called for a nationwide ban on Confessions of Judgment in response to the Bloomberg Businessweek series published last month. The bill, which would amend the Truth in Lending Act, may be named the Small Business Lending Fairness Act. You can download the bill here Though Businessweek has been […]

Who Are the New York City Marshals?

November 28, 2018
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NYC

In 2017, New York City Marshal Ruth Burko earned less in poundage than she owed the city in annual fees. At 91-years old, Burko’s tenure as a city licensed judgment enforcer has finally come to an end. She technically announced her retirement at the end of 2016 but her long career began when Mayor John […]

ELFA Reacts to New Jersey Small Business Loan Bill

October 31, 2018
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New Jersey Capitol Building in Trenton

The Equipment Leasing Financing Association (ELFA) had its 57th Annual Convention in Phoenix in the middle of October. During the convention, ELFA’s Vice President of State Government Relations Scott Riehl left abruptly to get to Trenton, New Jersey. Why the rush? He had been alerted that there was a hearing on a small business lending […]

Regulators Say ‘Sandboxes’ Work

October 22, 2018
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Emergence of RegTech at Money2020

From left to right: JoAnn Barefoot, Hummingbird Regtech, Barefoot Innovation Group | Nick Cook, Financial Conduct Authority (UK) | Christopher Sidler, Promontory | Patrick Pinschmidt, Middlegame Ventures | Alex Raydin, PerformLine At the regulatory technology (or RegTech) sessions at Money 20/20 yesterday, toy shovels seemed glaringly absent given the number of times the word “sandbox” […]

How Regulators Like to Be Approached

October 22, 2018
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The Regulatory Environment

From left to right: Duane Pozza, FTC | Chris Camacho, Greater Phoenix Economic Council | Paul Watkins, BCFB | Melissa Koide, FinRegLab | Manny Alvarez (moderator), Affirm On the first day of Money 20/20 yesterday, a panel of current and former regulators discussed how the regulatory environment can help emerging fintech companies and how the […]

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

October 15, 2018
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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 […]