north carolina – Vivenavalmoral http://vivenavalmoral.com/ Fri, 18 Mar 2022 14:47:59 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://vivenavalmoral.com/wp-content/uploads/2021/10/icon-12-120x120.png north carolina – Vivenavalmoral http://vivenavalmoral.com/ 32 32 Four Republican congressmen from North Carolina sign 2nd Amendment protections bill – The North State Journal https://vivenavalmoral.com/2022/03/16/four-republican-congressmen-from-north-carolina-sign-2nd-amendment-protections-bill-the-north-state-journal/ Wed, 16 Mar 2022 10:00:03 +0000 https://vivenavalmoral.com/2022/03/16/four-republican-congressmen-from-north-carolina-sign-2nd-amendment-protections-bill-the-north-state-journal/ Rep. Dan Bishop, R.C., speaks during a press conference held by members of the House Freedom Caucus on Capitol Hill in Washington, Thursday, July 29, 2021, to complain about House Speaker Nancy Pelosi, D-Calif. and masking policies. (AP Photo/Andrew Harnik) RALEIGH — Republican U.S. Representatives from North Carolina Dan Bishop (NC-09), Ted Budd (NC-13), Madison […]]]>
Rep. Dan Bishop, R.C., speaks during a press conference held by members of the House Freedom Caucus on Capitol Hill in Washington, Thursday, July 29, 2021, to complain about House Speaker Nancy Pelosi, D-Calif. and masking policies. (AP Photo/Andrew Harnik)

RALEIGH — Republican U.S. Representatives from North Carolina Dan Bishop (NC-09), Ted Budd (NC-13), Madison Cawthorn (NC-11) and Richard Hudson (NC-08) have signed on as co-sponsors for HR 6945, theAct prohibiting keeping all firearms in a system that restricts your rights (REGISTRATION)or No REGISTRY Act for short.

According to the two-page draft of the measure, No Registry’s primary purpose is “to amend Title 18 of the United States Code, to end the federal government’s collection of firearms transaction records.” fire from abandoned firearms businesses, to demand the destruction of those already collected records, and for other purposes.

The measure would require the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to remove or delete all existing firearms and firearms transactions, including records maintained by the ATF are apparently closing in on a billion, according to aJanuary 31 reportin the Free Washington Beacon.

the Free Washington Beacon The article states that “While the ATF denies that these records are used to track gun owners, it is transferring hard copies of the information into a searchable digital database which it says is used to trace firearms linked to crimes. The ATF reported that 865,787,086 of the recordings are already in digital format.

“The right to own and bear arms is one of our nation’s most fundamental freedoms,” Hudson said in a press release. “The Biden administration’s proposed ATF registry rule is another threat to our Second Amendment. I am proud to co-sponsor the No REGISTRY Rights Act to uphold the rights of all law-abiding citizens.

Republican U.S. Representative Michael Cloud (TX-27) is quoted by the Washington Free Beacon as leading an investigation into the ATF’s Apparent Firearms Sales Database, which led to the subsequent filing of the No REGISTRY Act , of which Cloud is the main sponsor.

The measure would also allow gun sellers and dealers to destroy their records when such a business closes. Under current laws, a licensed arms dealer who closes their business is required to turn over all records for the past 20 years to the ATF, which then places those transaction records in a database.

President Biden’s recent gun law proposals would end the 20-year period and instead require registrations for all the years a dealer has been in business.

Hudson signed a second gun-related measure, theFirearms Industry Non-Discrimination Act (FIND)what wasintroduced by US Representative Jack Bergman (MI-01).

“Recently, major financial institutions and other corporations have begun to adopt policies that have effectively restricted access to legal firearms far beyond the scope of current state and federal gun regulations,” says Hudson’s press release. “TheFIND Actwould solve this problem by preventing any company that discriminates against gun companies or associations from contracting or sub-contracting with the federal government – ensuring that federal funding is not used to advance these harmful policies .

The description of restrictive activity by financial institutions and corporations in the FIND Act is very similar to that of former Attorney General Eric Holder.Operation Chokepoint, whereby banks and lenders halted loans and services to businesses that did not conform to the ideological positions of the Obama administration. Businesses targeted under Operation Chokepoint included payday lenders and gun dealers.

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NCAA March Madness prepares for the return to normal https://vivenavalmoral.com/2022/03/13/ncaa-march-madness-prepares-for-the-return-to-normal/ Sun, 13 Mar 2022 11:21:03 +0000 https://vivenavalmoral.com/2022/03/13/ncaa-march-madness-prepares-for-the-return-to-normal/ A general view of the March Madness logo prior to the game between the Syracuse Orange and the Houston Cougars in the Sweet Sixteen of the 2021 NCAA Tournament at Hinkle Fieldhouse. Aaron Doster | USA TODAY Sports | Reuters After two difficult and pandemic-disrupted years, the March madness we all know so well returns. […]]]>

A general view of the March Madness logo prior to the game between the Syracuse Orange and the Houston Cougars in the Sweet Sixteen of the 2021 NCAA Tournament at Hinkle Fieldhouse.

Aaron Doster | USA TODAY Sports | Reuters

After two difficult and pandemic-disrupted years, the March madness we all know so well returns.

The 2022 Men’s NCAA Tournament begins Thursday on CBS Sports and Turner Sports. Disney properties ABC and ESPN will air the women’s NCAA tournament starting on Friday.

Paramount Global and WarnerMedia executives spoke on Tuesday to promote March Madness, which promises to pour nearly $1 billion in ad revenue into the men’s side.

“The country is ready for the [NCAA] tournament,” CBS Sports President Sean McManus said.

“We’re back to normal,” added Turner Sports President Lenny Daniels. “And we want to take that and go further.”

The networks lost the 2020 NCAA tournament due to Covid. The 2021 event took place in a bubble and saw the Baylor Bears claim their first NCAA men’s basketball championship.

But this year’s tournament will feature the return of legendary Duke and Kentucky programs — both missed last year’s tournament — and legendary coach Mike Krzyzewski chasing his last title with the Blue Devils.

Can the men’s tournament attract 20 million viewers?

The production of this year’s NCAA tournament isn’t changing too much. Games will once again feature a virtual on-field timer. There will be in-game coaching interviews and Final Four matches will see rail and aerial cameras integrated into the broadcasts.

But will there be more viewers than last year?

The 2021 NCAA Championship game between undefeated Gonzaga and Baylor averaged 16.9 million viewers for CBS Sports, a 14% drop from the 2019 game. It was also the least-watched championship aired on CBS since the network began airing the games in 1982 .

The 2021 Men’s Final Four matches averaged 14.9 million viewers.

The NCAA Men’s Tournament returns to Turner Sports this year for the first time since 2018, when Villanova defeated the University of Michigan. This title match drew around 16.5 million viewers.

CBS and Turner have been running the Final Four since 2016. The last time the NCAA Men’s Championship game topped 20 million was in 2017 when the University of North Carolina took on Gonzaga. This game attracted about 22 million viewers.

On Tuesday’s call, McManus reportedly wouldn’t predict viewership around the 2022 tournament, but added “good games, good storylines, and as we know, when a Cinderella shows up, it’s good for ratings.

He also noted that bigger programs returning to the tournament should help the viewership. In addition, the measurement company Nielsen will combine Outside the house hearing with the final measures. Out-of-home TVs are counted in places like airports, restaurants, and sports bars. Nielsen previously only provided in-home measurements for its linear television reporting.

McManus said Nielsen’s decision to combine the metrics is “good for the network and good for our sponsors, and it really provides an accurate count of how many people are consuming our content.”

On the women’s side, Disney is hoping to top last year’s title match between Arizona and Stanford. The pageant averaged 4 million viewers and has been the most-watched women’s pageant since 2014.

The 2021 women’s semifinals with Stanford and South Carolina averaged 1.6 million viewers, while the University of Connecticut’s loss to Arizona drew 2.6 million viewers, up by 24% compared to the second semi-final of 2019. Sweet 16 games broadcast on ABC, ESPN and ESPN2 averaged 918,000 viewers, an increase of 67% compared to 2019.

A detailed view of the March Madness logo on center court as Gonzaga Bulldogs and Norfolk State Spartans players run during the second half of the first round of the 2021 NCAA Tournament at Bankers Life Fieldhouse.

Kirby Lee | USA TODAY Sports | Reuters

March Madness commercials are sold out

Advertising inventory around the 2022 men’s tournament has run out, said John Bogusz, executive vice president of CBS Network’s sales division. Thirty-second spots for the tournament range from hundreds of thousands of dollars in earlier rounds to over $2 million for the NCAA title game.

Bogusz said the automotive, insurance and fast food categories are “very active and very strong this year.” Movie studios are also returning to rotating ads, while travel and tech companies will also promote around games.

TV Ad Measurement Company I spot ad spend estimates around the 2021 men’s basketball tournament were around $1.05 billion, a 21.4% increase from the 2019 tournament. The company told CNBC that AT&T was the biggest spender with $74.7 million on ads around the 2021 tournament. Capital One spent $48.7 million on ads, Geico ($46.7 million), Buick ($39.5 million dollars) and Progressive ($37.7 million).

Briefed on the estimates and asked if ad spend around the 2022 men’s tournament would top $1 billion, Bogusz didn’t reveal details, but added the projection was “within range.”

“It’s pretty impressive,” Turner Sports chief revenue officer Jon Diament said, referring to ad spend. Diament noted the time the networks have to deliver the games – “three weeks of activity…it’s pretty remarkable that we can gobble up that money in just three weeks of flying.”

Last September, the NCAA declared the 2022 NCAA Women’s Tournament to be included in the March Madness brand. The decision has come after mounting pressure and criticism on the organization’s initial stance on using the brand only for the men’s tournament.

EPSN said he also sold his inventory for the women’s tournament. Twenty-two advertisers, including Apple, General Motors, Target and T-Mobile, will run ads during the games.

The sports program advertising market remains a top buy for advertisers. The National Football League Super Bowl remains the most expensive inventory. CNBC’s parent company, NBCUniversal, billed about $6.5 million for Super Bowl 56 ads, and some brands paid a record $7 million for a 30-second ad.

Yet the high prices of sports programs do not deter companies. Bogusz said “advertisers in all demo groups are allocating extra dollars” to buy inventory.

“It’s the best drama series in all of television, and for many advertisers, it’s still the most engaging programming you can have,” McManus said. “And that includes the NCAA Tournament.”

When asked if the NCAA Men’s Tournament will increase to $3 million per 30 seconds when CBS returns to the event in 2023, Bogusz replied, “I wouldn’t say it would be that high. But we plan to increase prices as we continue to move forward.

Demonstrators protest against the war in Ukraine in front of the Brandenburg Gate.

Kay Nietfeld/photo alliance via Getty Images

War contingency plans

As the networks welcome a return to normalcy for March Madness, contingency plans are in place to update major news at the moment – Russia’s invasion of Ukraine.

“There are bigger things going on in the world right now than the NCAA Tournament,” McManus said. “No one will claim that the action on the ground is as important as the life and death action that is taking place in Ukraine,” he added.

McManus referenced the invasion of Iraq in March 2003 to explain how the network would approach coverage. He said the networks would update the war in Ukraine as needed and “handle it in the best possible way”.

“We have two of the best production companies and two of the best news agencies,” Daniels added, referring to CBS News and CNN. “I think we will make the right decisions.”

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Is daily payment the way of the future? A 5-step guide for employers considering an Early Access Salary Program to attract and retain talent https://vivenavalmoral.com/2022/03/10/is-daily-payment-the-way-of-the-future-a-5-step-guide-for-employers-considering-an-early-access-salary-program-to-attract-and-retain-talent/ Thu, 10 Mar 2022 23:13:01 +0000 https://vivenavalmoral.com/2022/03/10/is-daily-payment-the-way-of-the-future-a-5-step-guide-for-employers-considering-an-early-access-salary-program-to-attract-and-retain-talent/ In what continues to be dubbed the Great Resignation, employers are looking for creative ways to retain and attract talent. An Early Wage Access (EWA) policy – ​​a revolutionary benefits program that gives employees access to their salary within an hour of a shift – may well be what gives the advantage to businesses. In […]]]>

In what continues to be dubbed the Great Resignation, employers are looking for creative ways to retain and attract talent. An Early Wage Access (EWA) policy – ​​a revolutionary benefits program that gives employees access to their salary within an hour of a shift – may well be what gives the advantage to businesses. In fact, companies using these benefit programs experienced 19% lower turnover rates. Among companies that have already added early payday access to their compensation programs, 89% of employees said they felt more motivated and productive at work when they had access to their payday before payday and 74% said have fewer unplanned absences. But with many states plagued with onerous employment laws, what should employers know about early access to wages?

Early access to salaries: what is it?

Early Wage Access or Earned Wage Access (EWA) is an innovative method of quickly disbursing wages at or shortly after the end of the working day. Traditionally, payroll is run most often every two weeks. But now, employers – by partnering with EWA suppliers – can offer employees immediate access to earned wages for hours already worked. Rather than waiting for their bi-weekly payday, an employee can access their earned pay within hours of completing their job.

This program differs from the practice of payday loans. With EWA programs, employees have already done the work they are paid to do. This program simply allows them to receive the compensation they have earned before their bi-weekly payday. The EWA is administered through an EWA provider who typically provides employees with access to payroll through a number of means including direct deposit, Automated Clearinghouse Transfer (ACH), or a debit card. payroll debit (i.e. a payment card).

From 2018 to 2020, EWA vendors processed nearly $15 billion in advance payroll transactions. We anticipate that these numbers will continue to grow, and that the options and how salaries can be paid and accessed early will continue to evolve as fintech companies continue to improve and expand their options. In this overview, we will provide a general overview of EWA programs, the applicable legal framework, and five key questions employers should assess before implementing an early wage access program. Stay tuned for more information on EWA and payment card usage, how EWA can work for employees seeking cryptocurrency compensation, and more.

Is the EWA regulated?

EWA is an emerging practice that is currently legal – as long as it is properly implemented. These programs have drawn some opposition from consumer advocacy groups, and a handful of states have passed regulations in response to the growing trend. Other laws regulating EWA programs are expected to follow as they attract the attention of Congress and state legislatures. However, no state has outright banned the practice. This is partly because lawmakers and regulators have found that these programs benefit employees, especially low-wage earners who live from paycheck to paycheck.

For example, California – after passing a new consumer financial protection law – recently entered into an agreement with five EWA providers that effectively allows these types of businesses to continue operating in the state. In return, these companies will share information and access with state officials to provide a better understanding of the products/services and the risks and benefits for California consumers and employees. It will be important to follow the anticipated developments that will arise from this arrangement.

At the state level, New Jersey, New York, Nevada, South Carolina, Georgia, and North Carolina have adopted EWA regulations. Utah and California have attempted to legislate, but to date have not passed anything because the proposed bills were too broad. Although there is some variation between enacted state laws, each generally requires that:

  • the employer has a contract with an EWA provider in which the provider is able to verify an employee’s earned income;
  • the EWA provider pays a percentage of earned income to the employee prior to the date the employer is otherwise expected to pay the employee, and
  • the amount of earned income prepaid is reduced or withheld from the employee’s next regular paycheque.

Interested? 5 key considerations

EWA is becoming increasingly popular as an attractive employee benefit. This is not surprising given that there are 56 million Gen Y employees and 65 million Gen Z employees in the current workforce. The debate over whether this actually benefits employees is already fierce, but what is clear is that many employees want and may soon expect this benefit as part of their jobs. Indeed, more than 78% of Americans live paycheck to paycheck, leading to increased pressure to come up with plans to make ends meet between paydays.

If you run a business that employs low-income earners or younger generations who want their money fast, you might consider adding EWA. However, depending on the state you are operating in, there are several things to consider. This article covers five main considerations – but recognize that this list is not exhaustive and your organization should consult with your lawyer regarding salary and hours before taking the plunge.

Consideration #1: You will need to comply with state and federal wage and hour laws

Since EWA programs currently exist in a gray area – unregulated in most states and still considered an emerging practice – compliance with existing workplace laws is of the utmost importance. In particular, you must ensure that you comply with state-specific laws, including, but not limited to, those relating to:

  • Salary assignments. Typically, some state-specific laws govern wage assignments. For example, California prohibits them unless permitted by law. A wage assignment occurs when an employer pays an employee’s wages to a third party. At this point, there is no law or agency advice specifically addressing this issue in the context of the EWA. However, salary assignments are a potential area of ​​concern.
  • Salary deductions. Many states strictly limit deductions from earned wages to specific amounts and circumstances defined by law. The general rule is that deductions can only be made if specified by law (for example, for payments such as taxes, medical insurance premiums, etc.) or with express written permission (at limited purposes). In states that prohibit or limit payroll deductions, you must ensure that employees receive their full pay and are not charged for taking advantage of the EWA benefit. For example, you will need to review the EWA program to ensure that salaries can be obtained without incurring any fees. Correct payment of wages. The structure of an EWA program must ensure that the benefit does not result in the irregular payment of wages. Data management is extremely important, as hours worked and wages earned must be properly and accurately recorded and transmitted to the EWA provider.
  • No payday loan. Be sure to only allow employees to access previously earned salaries. More than a dozen states ban payday loans and others regulate the practice. Therefore, it is important to ensure that the EWA program is not considered a loan.

Consideration #2: Be aware of data privacy issues

Employee personal data is governed by a minefield of laws and regulations. Additionally, under current state EWA regulations, an employer is prohibited from sharing employee salary/income data with an EWA provider unless they follow certain rules. You should be careful when sharing employee data and information and recognize that employee consent is absolutely necessary.

Consideration #3: Take Note of Benefit Implications

Paying for benefits using EWA and/or payment cards is a matter that needs to be handled carefully. For example, traditional and legacy benefit plans as well as payroll and deduction issues may arise.

Consideration #4: You must also comply with state and federal payment card laws

The use of cash cards for payroll is fairly regulated by the federal government and most states. If an EWA program offers access to wages via payment cards, compliance with these laws is necessary in addition to those that regulate the practice in general.

Consideration #5: Develop strong indemnification language for contracts with EWA vendors.

Sanctions are provided for EWAs that do not comply with applicable regulations. These are primarily for the service provider as the lender, but the wording of the indemnity in the contract between the employer and the EWA provider is important.

Conclusion

EWA’s benefits programs can give companies the edge in attracting and retaining talent, and may also soon become expected by younger generations within the workforce. Compliance and legal written policies and their implementation will be key to success. Stay tuned for additional information on how this practice is likely to evolve, including how EWA programs may be rolled out with payment cards and screening regulations, as well as how we expect this to happen. that EWA interacts with cryptocurrency. To ensure you stay up to date, be sure to subscribe to receive Fisher Phillips Insights straight to your inbox.

In the meantime, if you want to learn more, have questions about EWA, or want to add it to your benefits package, be sure to contact the authors of this preview, your Fisher Phillips attorney, or any lawyer in our Salary and Group of Practice Hours department.

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What is it, why is it important https://vivenavalmoral.com/2022/03/10/what-is-it-why-is-it-important/ Thu, 10 Mar 2022 21:41:05 +0000 https://vivenavalmoral.com/2022/03/10/what-is-it-why-is-it-important/ Black Players for Change formed in response to nationwide protests following the 2020 police killing of George Floyd. An independent organization of over 170 Major League Soccer players, coaches and staff, the BPC aims to “close the racial equality gap”. in American society. On Thursday, MLS announced one of the organization’s biggest wins to date, […]]]>

Black Players for Change formed in response to nationwide protests following the 2020 police killing of George Floyd. An independent organization of over 170 Major League Soccer players, coaches and staff, the BPC aims to “close the racial equality gap”. in American society.

On Thursday, MLS announced one of the organization’s biggest wins to date, a $25 million loan from a syndicate of black banks. The historic agreement will help close this racial economic gap in a way never before seen in American professional sports.

The loan was facilitated by the non-profit National Black Bank Foundation (NBFF) in conjunction with Black Players for Change, the Black Bank Fund and Bernice A. King, daughter of King Center CEO Dr. Martin Luther King Jr. and member of the board of directors of the NBBF. King, who was the Golden Spike striker during Atlanta United matcheskicked off the deal in February 2021.

“This transformative partnership between MLS and black banks across the country is proof of what can happen when leaders bravely stand up and decide to be part of equitable change,” Bernice King said. “I brought MLS and NBBF together because I saw an opportunity to create a partnership with the power to transform lives in Black communities and change hearts and minds across our country. an important moment in the ongoing struggle for civil rights in the United States.

What does the MLS Black Banks loan do?

So what exactly is this loan for? What’s the point of taking out a $25 million loan in a league that requires 10 times the expansion fee? A broad look at the numbers explains why it’s needed and how it will affect black communities.

Why MLS Black Bank Loan is needed

In 2020, the Federal Reserve said the median wealth gap between black and white families was $161,000. This means that the typical white family had $184,000 in wealth while the typical black family had $23,000 in wealth. (Note: When we talk about white families, we are referring to non-Spanish speaking families.)

Additionally, 82% of black families have less wealth than white families. This number is significant because this number was 85% in 1963 at the height of the civil rights movement, meaning little progress has been made in nearly 60 years. Plus, black families are on the verge twice as likely to be denied loans than white families and about half of black families are unbanked or underbanked against 15% for white families. When you add expensive banking alternatives like check cashing services, payday loans, money orders, and prepaid credit cards, it can costs black families over $40,000 over a lifetime.

It doesn’t take a math whiz to realize that these numbers shouldn’t be so far apart, and that’s only scratching the surface. Additionally, the racial economic divide has been exacerbated by Covid-19. You would have to be a racist not to be worried about this huge wealth gap.

We don’t have the time or the expertise to go through all the reasons for this. differencebut centuries of racist economic policies (think educational opportunities, redlining, and good old-fashioned racism) have contributed to this significant disparity.

How the MLS Black Bank loan will affect black communities

The racial economic gap makes investing in Black communities all the more important, and this MLS Black Banks loan will do just that.

The loan was extended to seven black banks across the country, including in Atlanta, New York, Birmingham, Alabama, Milwaukee, Durham, North Carolina and Houston. Through fixed fees and interest rates, banks’ capital cushion will increase, allowing banks to provide more credit for home or business loans in Black communities. Essentially, for every dollar that these banks make from this deal, they can reinvest $10 in black businesses and families.

This means Major League Soccer’s $25m loan could have an economic impact of $250m.

“By reaching agreements like the one we are celebrating here today, we are directly addressing and establishing a platform to overcome the undervaluation of black participation in the economic ecosystem,” said Quincy Amarikwa, BPC founder and 11-year MLS veteran. “Creating opportunities like this demonstrates that we are headed in the right direction. We welcome the opportunity to build on this positive momentum in partnership with MLS and others.”

While some prematurely declared racism in America in the wake of the 1960s civil rights movement and others said it ended when Barack Obama was elected president in 2008, a real look at the country shows the opposite. The racial economic gap is just one of the many ways racism continues to impact people of color, especially in black communities.

While this deal won’t erase racism and its myriad issues, it is a historic investment in black communities unparalleled in sports (the Atlanta Hawks have a similar deal through the NBBF, but it’s is the first league-wide agreement).

Since 2020, Major League Soccer has been committed to fighting racism and championing social justice. By bringing Black Players for Change to the table, the league was able to effect positive change both on and off the pitch.

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How private and public partnership can solve the epidemic of financial exclusion https://vivenavalmoral.com/2022/02/25/how-private-and-public-partnership-can-solve-the-epidemic-of-financial-exclusion/ Fri, 25 Feb 2022 12:02:38 +0000 https://vivenavalmoral.com/2022/02/25/how-private-and-public-partnership-can-solve-the-epidemic-of-financial-exclusion/ Achintya Ray, Ph.D is Professor of Economics in the College of Business at Tennessee State University. Success in life basically depends on one’s ability to participate in the modern financial system. Our accounts in banks and credit unions are the main foundations of our financial life. Most of us get our paychecks deposited into bank […]]]>
  • Achintya Ray, Ph.D is Professor of Economics in the College of Business at Tennessee State University.

Success in life basically depends on one’s ability to participate in the modern financial system. Our accounts in banks and credit unions are the main foundations of our financial life.

Most of us get our paychecks deposited into bank or credit union accounts. We also pay our bills by writing checks or using bill payments from these accounts. We regularly check our savings using smartphone apps connected to these accounts.

The credit and debit cards we use are also linked to various banks and allow us to participate effortlessly in a digital economy while keeping transaction costs low.

Listen to the black voices of Tennessee: Receive the weekly newsletter for powerful and critical think tanks.

Households without a checking or savings account at a bank or credit union incur significant costs by being forced to use expensive services like payday loans, check cashing services, fee prepaid cards high, etc. Sadly, hundreds of thousands of Tennessee households find themselves in this situation every day. The FDIC Survey of Household Use of Banking and Financial Services found that about 8.1% of Tennessee households are “unbanked,” meaning no one in those households had a checking or savings account at a bank or credit union.

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Michigan ballot measure aims to cap payday loan rates https://vivenavalmoral.com/2022/02/23/michigan-ballot-measure-aims-to-cap-payday-loan-rates/ Wed, 23 Feb 2022 22:51:29 +0000 https://vivenavalmoral.com/2022/02/23/michigan-ballot-measure-aims-to-cap-payday-loan-rates/ LANSING — A coalition of consumer and civil rights groups hoping to strengthen regulation of Michigan’s payday loan industry launched signature-raising efforts on Wednesday to bring the issue before voters in November. Michiganders for Fair Loansa Grand Rapids-based organization, is spearheading a ballot initiative that cap the maximum fees and interest rate a payday lender […]]]>

LANSING — A coalition of consumer and civil rights groups hoping to strengthen regulation of Michigan’s payday loan industry launched signature-raising efforts on Wednesday to bring the issue before voters in November.

Michiganders for Fair Loansa Grand Rapids-based organization, is spearheading a ballot initiative that cap the maximum fees and interest rate a payday lender can charge in Michigan each year at 36%. The measure would also allow the state attorney general to prosecute lenders who exceed that limit.

Related:

Payday loans are often short term loans with high interest rates which become due on the borrower’s next payday, according to the Consumer Financial Protection Bureau.

Michigan Law allows a payday lender to charge fees and interest at a maximum of 15% on the first $100, 14% on the second $100, 13% on the third $100, 12% on the fourth $100 and 11% on the fifth and sixth $100.

This means that someone who borrows $100 can be charged up to $15 if they repay the loan within two weeks. In this case, the annual percentage rate – a metric measuring the annual cost of lending to a borrower – is 391%, nearly 10 times higher than Michiganders for Fair Lending’s proposed cap of 36%.

Coalition members say the ballot measure would limit predatory lending and help borrowers trapped in a cycle of debt due to high interest rates and a lack of government oversight over lending practices.

“While the industry sees its payday loans as a quick fix, these loans take away a person’s financial capacity and put them in a worse situation than when they started,” said Ted Fines, executive director of Habitat for Humanity in Michigan, on a Wednesday. press conference.

Legislation to cap interest rates on payday loans has stalled in the Michigan legislature for the past few years, said Jessica AcMoody, director of policy for coalition member organization Community Economic Development Association of Michigan, at Wednesday’s press conference.

Senate Finance Committee Chairman Jim Runestad, R-White Lake, whose committee would hear such legislation if it came to the Senate, said he believes the maximum interest rate should be lowered, but he does not don’t know by how much.

“It sure seems like someone paying nearly 400% a year is out of the picture,” Runestad said in Bridge Michigan on Wednesday. “I think it’s usurious to charge 400% per year. It’s like a loan shark.

Opponents of similar initiatives across the country have expressed concern that the measure will force legitimate lenders out of business and cut off the lifelines of borrowers in need of short-term cash.

“I fear capping interest on short-term credit will completely eliminate access to emergency funds for the most vulnerable Americans,” said Diego Zualaga, a policy analyst at the CATO Institute, a libertarian think tank. a Congressional hearing in April 2019. “Imposing a cap on small loans today risks leaving vulnerable households at the mercy of unscrupulous family members or providers, or forcing them to go without basic necessities.”

In Michigan, payday loan stores are more likely to be concentrated in communities of color, where residents typically bring in less money than white Michiganders, according to a 2018 mapping analysis by the Center for Responsible Lendinga North Carolina-based nonprofit that advocates for short-term borrowers and a member of the coalition advocating Michigan’s ballot measure.

In June 2017, there were 5.6 payday loan stores per 100,000 people in Michigan, the analysis showed. But in census tracts where black and Latino residents make up more than half the population, there were 6.6 stores per 100,000.

Most payday loan borrowers tend to come back to borrow more. About 70% of Michigan borrowers take out another loan the same day they repay the last one, according to a 2016 report from the Center for Responsible Lending.

Some borrowers are emptying their bank accounts to meet loan repayments, leaving no savings to cover rent or food expenses and therefore have to take out another loan to make ends meet, AcMoody said.

“This cycle is causing significant financial damage to families trapped in debt, including difficulty paying basic living expenses and medical needs,” she said.

Why lower the ceiling to 36%? The number is taken from the Military Loans Act 2006 which capped the annual interest rate on payday loans at 36% for active duty military personnel and their dependentssaid Gabriella Barthlow, a Financial Coach for Macomb County Veterans and Familiesat Wednesday’s press conference.

The military law was passed after the Department of Defense found that payday lenders “crammed around military bases were impacting readiness and reducing quality of life for military families,” Barthlow said. .

A total of 18 states and Washington, DC, have enacted a 36% cap on payday loan interest, according to responsible credit center.

Responding to concerns that the cap could force payday lenders out of business, AcMoody said the coalition does not hope to shut down the lending industry, but rather curb predatory lending.

“Any lender who is willing to lend at 36% APR can continue lending,” she said.

The coalition includes:

  • ACLU-Michigan
  • Black Impact Collab
  • Civil Justice Center
  • responsible credit center
  • Community Economic Development Association of Michigan (CEDAM)
  • habitat for humanity
  • Caisse Populaire du Lac Trust
  • Michigan League for Public Policy
  • Grand Rapids NAACP
  • GREEN project
  • United Way of Michigan

Michiganders for Fair Lending’s voting committee has so far raised $25,056, according to campaign fundraising documents submitted in January. Of that amount, $25,000 came from the Sixteen Thirty Fund, a DC-based liberal black money group that is not required to disclose its donors.

Josh Hovey, spokesman for the Michigan coalition, said Wednesday that funds from the Sixteen Thirty Fund helped launch the campaign, and that the ballot initiative committee will follow the campaign finance law of the State “to the letter”.

The voting committee needs to collect 340,047 signatures to place the ballot proposal on the November ballot and will become law if a simple majority of voters approve.

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Tax Refund Loans | The bank rate https://vivenavalmoral.com/2022/02/21/tax-refund-loans-the-bank-rate/ Mon, 21 Feb 2022 22:58:59 +0000 https://vivenavalmoral.com/2022/02/21/tax-refund-loans-the-bank-rate/ Are you expecting a tax refund from the IRS? You may not have to wait for the IRS to process your return and send you a direct deposit or a check in the mail. If the tax preparation service you use offers tax refund loans, you could get an interest-free advance on your money. These […]]]>

Are you expecting a tax refund from the IRS? You may not have to wait for the IRS to process your return and send you a direct deposit or a check in the mail.

If the tax preparation service you use offers tax refund loans, you could get an interest-free advance on your money. These loans are easy to obtain and generally do not require a credit check. However, they may not be wise given that you may have to spend money to access funds that belong to you.

What is a tax-free loan?

Tax refund loans are available to taxpayers who have filed a federal tax return and are eligible for a refund. These loan products are generally for a fixed amount, between $200 and $6,000and offered between January and the end of February.

How Do Tax Free Loans Work?

When you file your return, you can apply for a tax refund loan if offered by the tax preparation service. If approved, funds are distributed by check or loaded onto a prepaid card. The time frame for financing depends on the lender and how you choose to receive the loan proceeds.

However, you will not repay the lender or company offering the loan. Instead, it will be taken from your refund before it is sent to you.

Where can you get tax refund loans?

H&R block

H&R Block’s Refund Advance Loan is offered to customers through MetaBank. You can apply without affecting your credit score and you won’t pay any fees or interest to the lender.

Minimum Federal Tax Refund Amount

$250

Tax preparation fees

Starts at $80 if filed with a tax professional (additional fees apply for state filings)

Amounts of prepayment advances

Not applicable

Amounts of loans without reimbursement of fees

$250, $500, $750, $1,250 and $3,500

Funding deadline

From the same day

Deadline

February 28, 2022

Terms

Be at least 18 years old and file your tax return electronically with a tax professional at an H&R Block office

Turbo tax by Intuit

The Intuit Turbo Tax Refund Advance is also a no-fee, no-interest loan product. It is offered by First Century Bank to filers who use Turbo Tax.

Minimum Federal Tax Refund Amount

$500

Tax preparation fees

No fees for simple federal and state income tax returns (valid until 03/31/2022)

Amounts of prepayment advances

Not applicable

Amounts of loans without reimbursement of fees

$250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500 and $4,000

Funding deadline

As little as one hour after acceptance of IRS electronic file

Deadline

February 15, 2022

Terms You must be at least 18 years old and not live in Connecticut, Illinois or North Carolina. You must file your federal return electronically with TurboTax and report your income on a Form W-2, Schedule C, Schedule CEZ, or 1099-R. You cannot file with IRS Forms 1040PR, 1040SS, 1040X, 1310, 4852, 4684, 4868, 8862, or 8888.

Jackson Hewitt

Jackson Hewitt offers two Refund Advance loan products, both underwritten by MetaBank. The prepayment advance loan is subject to an APR of 35.9%, or you can get a no-fee repayment advance loan without paying interest or fees.

Minimum Federal Tax Refund Amount

$500

Tax preparation fees

Not disclosed

Amounts of prepayment advances

$200, $500, $1,000

Amounts of loans without reimbursement of fees

$500, $750, $1,000, $1,500, $3,500

Funding deadline

In minutes for the Serve® prepaid debit card. Direct deposit takes 1-5 business days.

Deadline

February 20, 2022

Terms You must be at least 18 years old and file your return electronically with Jackson Hewitt or kiosks at Walmart stores. You must also have a satisfactory payment history with the IRS and other federal and state agencies (i.e. Child Support Enforcement, Department of Education)

Should I take out a tax-free loan?

It depends on your financial situation. You could get cash right away to deal with an unexpected financial emergency, pay off high-interest debt, make a big purchase, or use as you see fit.

Still, a tax refund loan could cost you a significant amount of money if the lender charges a fee, and you’ll essentially be paying to borrow your own money. And if your refund is delayed or denied if there are unresolved tax issues or you owe back taxes, you could end up with a lot of debt. So it may be better to wait for the IRS to process your refund.

Alternatives to the tax-free loan

If you’d rather explore other options, or you’re not getting a refund but need the money, these alternatives might be right for you:

  • Online Loans: Use an online loan marketplace to find personal loan products at competitive rates. Fixed personal loans are payable in equal monthly installments over a fixed period, usually between three and five years.
  • Short-term emergency loans: These loans act as payday alternatives and can give you quick cash without costing you a fortune in interest. Some lenders won’t check your credit when you apply, so you might get approved even if your credit score isn’t up to par.

These online lenders offer fast financing if you need cash now.

Lender

Amount of the loan

APR

Minimum credit score

Funding deadline

Before

$2,000 – $55,000

9.95% – 35.99%

580

As soon as one working day

LendingPoint

$2,000 – $36,500

9.99% – 35.99%

590

As soon as one working day

OneMain Financial

$1,500 – $20,000

18% – 35.99%

Unspecified

As soon as one day

Prosper

$2,000 – $40,000

7.95% – 35.99%

640

As soon as one working day

To improve

$1,000 – $50,000

5.94% – 35.97% (with automatic payment)

Unspecified

As soon as one day

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District Court Upholds OCC and FDIC Rules on ‘Performance Date Validity’ | Skadden, Arps, Slate, Meagher & Flom LLP https://vivenavalmoral.com/2022/02/16/district-court-upholds-occ-and-fdic-rules-on-performance-date-validity-skadden-arps-slate-meagher-flom-llp/ Wed, 16 Feb 2022 01:35:26 +0000 https://vivenavalmoral.com/2022/02/16/district-court-upholds-occ-and-fdic-rules-on-performance-date-validity-skadden-arps-slate-meagher-flom-llp/ On February 8, 2022, a federal district court in California issued two opinions, granting summary judgment to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) and dismissing challenges from eight states (plaintiffs ) that the agencies’ “good when made” rules facilitated predatory lending and were invalid under […]]]>

On February 8, 2022, a federal district court in California issued two opinions, granting summary judgment to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) and dismissing challenges from eight states (plaintiffs ) that the agencies’ “good when made” rules facilitated predatory lending and were invalid under the Administrative Procedures Act.1 The rules essentially codified the doctrine that if an interest rate was legal when the loan was made by a bank, that rate remains legal after the sale, assignment or other transfer of the loan.2

The OCC and FDIC released their rules in response to the holding of the second circuit in Madden Funding v. MidlandLCC,3 where a national bank sold credit card debt to a buyer of non-bank debt. A debtor filed a putative class action lawsuit against the buyer’s affiliate for collecting on the account, including interest at a rate that exceeded New York’s usury law. The debtor argued that once the debt was sold by the bank, the preemption of interest rates under federal banking laws no longer applied and state law was governed.4 the crazy the court rejected the debt collector’s pre-emption defense, holding that where the operations of a national bank would not be significantly impaired, such as where the bank no longer has any interest in or control over the debt, the third party to whom the loan was assigned could not invoke usury preemption under federal banking law.

the crazy The decision created substantial uncertainty for both banks selling loans and non-banks buying loans as to whether the interest rate would continue to be legal after the sale. The OCC and FDIC “good when made” rules were intended to ensure that the initial interest rate would remain legal after the sale, regardless of state usury laws.

However, the plaintiffs alleged the rules allowed non-bank lenders to evade state-imposed interest rate caps to curb predatory consumer lending. The plaintiffs claimed that the non-bank lenders formed fictitious “rent-a-bank” partnerships with banks in which the bank originates the loan and then transfers it to the non-bank lender so that the interest rate cap of the relevant State is not applied. The plaintiffs challenged the rules of the Administrative Procedures Act.

The district court asked Chevron deference to the agencies’ interpretations of federal banking laws and upheld the rules.5 He determined that the OCC and FDIC had acted within their authority and in accordance with previous directives from Congress when enacting their rules. The court further found that the OCC and FDIC had reasonably interpreted the statutes and related rulemaking, and that their rulemaking was not “arbitrary” or “capricious,” since the record did not indicate not that the agencies had not taken into account the potential problems that could arise from the rules.

In response to the court’s decision, Acting Comptroller Hsu said, “This legal certainty should be used for the benefit of consumers and should not be abused. I want to reiterate that predatory lending has no place in the federal banking system. The OCC is committed to strong supervision that expands financial inclusion and ensures that banks are not used as a vehicle for “charter lease” arrangements.

Such arrangements are of concern to House Financial Services Committee Chair Maxine Waters (D-California), who has identified “combating bank leasing schemes that harm consumers” as a priority for the committee.6 Currently, however, no legislation is being introduced in Congress to address the Madden vs. Midland decision or rules of the OCC or FDIC.

It is important to note that the decision of the district court is subject to appeal. Further, the decision does not address the potential challenges of partnership banking models under a so-called “true lender” theory. According to this theory, some plaintiffs and states have sought, with mixed success, to assert that the relationship between a bank and a non-bank platform (often a fintech) is one in which the non-bank is the “true lender”. in the transaction. , and therefore the federal interest rate and license preemption do not apply. But, despite these limitations, the ruling is an important step in bringing more certainty to the financial services industry regarding business models involving loans acquired from banks.

_______________

1 Persons of the State of California, et al., c. Federal Deposit Insurance Corp..¸ No. 20-cv-05860-JSW (ND Cal. February 8, 2022); People of the State of California, et al., c. The Office of the Comptroller of the Currency, et al.., no. 20-cv-05200-JSW (ND Cal. February 8, 2022). The FDIC lawsuit was filed by California, the District of Columbia, Illinois, Massachusetts, Minnesota, New Jersey, New York and North Carolina. The lawsuit against the OCC was filed by California, Illinois and New York.

2 The OCC rule is “Interest allowed on loans sold, assigned or otherwise transferred», 85 Fed. Reg. 33,530 (June 2, 2020). The FDIC rule is “Rule of the Federal Interest Rates Authority», 85 Fed. Reg. 44146 (July 22, 2020).

3,786 F.3d 246 (2nd Cir. 2015).

4 Under the National Bank Act of 1864 and the Homeowners Loans Act of 1933, national banks are not subject to the interest rate ceilings of other states and can “export” the interest rates from their home state to the states where their borrowers live, and states’ usury of law claims against domestic banks are anticipated.

5 The “Chevron analysis” refers to a legal test established by the Supreme Court in Chevron USA v. Natural Resources Defense Council to determine when the court should defer to an agency’s interpretation of a law. 467 US 837 (1984).

6 In a previous convention, President Waters opposed legislation to codify the doctrine of validity when made. At the time, she said, “We can’t introduce a bill that will allow non-banks like payday lenders to bypass state interest rate caps and make loans at high rate. Although Congress preempted some state laws for national banks, it did not allow national banks to extend the privilege to entities of their choosing.

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U.S. consumers set to save billions with bank overdraft reforms https://vivenavalmoral.com/2022/02/11/u-s-consumers-set-to-save-billions-with-bank-overdraft-reforms/ Fri, 11 Feb 2022 02:00:00 +0000 https://vivenavalmoral.com/2022/02/11/u-s-consumers-set-to-save-billions-with-bank-overdraft-reforms/ In one of the first efforts to assess the impact of recent overdraft fee reforms, new analysis finds changes underway at just five banks could save consumers more than $2 billion a year. The Pew Charitable Trusts reviewed announcements from Bank of America, Wells Fargo, US Bancorp, Truist Financial and Regions Financial last month to […]]]>

In one of the first efforts to assess the impact of recent overdraft fee reforms, new analysis finds changes underway at just five banks could save consumers more than $2 billion a year.

The Pew Charitable Trusts reviewed announcements from Bank of America, Wells Fargo, US Bancorp, Truist Financial and Regions Financial last month to determine how much money each company could lose in fees.

These five banks all unveiled new overdraft programs over the course of nine days in January, which Pew called “a watershed month to strengthen consumer protections” in the banking industry.

“For those who are underbanked and using payday loans and other high-cost forms of lending, these changes over time could be worth billions of dollars a year,” said Alex Horowitz, senior manager of the consumer finance project from Pew.

The ultimate impact of the changes — both at the five banks studied by Pew and elsewhere — will depend on how American consumers react. In addition to reducing overdraft fees and making it easier to avoid fees, some banks are introducing small dollar loans that could replace a checking account overdraft.

The $2 billion estimate could rise, depending on how much borrowers from the five banks end up saving by tapping into small loans, Horowitz said.

Bank of America and US Bancorp already had small dollar loans, up to $500 and $1,000 respectively, before announcing revisions to their overdraft policies. Wells Fargo, Truist and Regions plan to roll out such loans, from $500 to $750, later this year.

The loans will be especially helpful to customers who frequently use overdrafts as short-term credit and therefore incur substantial fees, Horowitz said. Pew research showed that 18% of bank account holders pay 91% of all overdraft fees in the United States.

The fact that more banks are offering small loans “is a very, very positive change,” Horowitz said. “They offer cash with time to repay…and customers need help repaying.”

the drastic changes come as large and medium-sized banks are under pressure both regulators and competitors to reduce their reliance on overdraft fees.

Some banks are waiving fees charged when overdrawn customers unsuccessfully attempt to make a purchase, as well as fees charged when a negative balance is covered by a transfer from a linked account. Some banks give customers longer grace periods before charging fees or limit the number of fees customers can incur each day. In one a pair of casebanks are dropping overdraft fees completely.

Over the past four weeks, United States retail banking unit of the Toronto-Dominion BankFirst Citizens BancShares in Raleigh, North Carolina, and M&T Bank in Buffalo, New York, also announced changes to their overdraft programs.

Pew reached the $2 billion figure by analyzing revenue projections for Truist, US Bancorp and Regions, and estimating similar numbers for Bank of America and Wells Fargo, Horowitz said.

Truist expects his changes to result in an annual decrease of approximately $300 million overdraft revenue — nearly 60% of the company’s total — by 2024.

Regions estimates that service charges on its deposit accounts will be 20% to 30% less than the $729 million it raised in 2019. And US Bancorp expects it lose 160 to 170 million dollars into annual royalty revenue when all of its changes are implemented.

Across the U.S. banking industry, revenue from overdraft fees increased between 2016 and 2019, eventually reaching $17.2 billion, according to a recent analysis by consulting firm Curinos.

But overdraft fee revenue fell sharply in 2020, partly because banks temporarily dropped fees to help customers manage the early days of the pandemic, but also because customers had more money on their cards. accounts due to government stimulus programs.

The growing number of banks changing their overdraft programs is “clearly hugely positive and frankly long overdue,” said Rob Levy, vice president of research and policy at the Financial Health Network, a nonprofit group focused on health. financial well-being.

In particular, adding more low-value loan options is “one piece of the puzzle” in reducing consumers’ reliance on overdrafts, Levy said. Despite a few banks recently cutting prices, standard overdraft fees have long hovered around $30-$35.

Small dollar loans are also key to getting more people into the banking system and keeping them there, Levy said. “The ads we’ve seen seem to be structured in a much better way – low fees, transparent, accessible,” he said.

Since eligibility for small loans appears to be based on an established relationship with the bank, not the customer’s credit rating, the loans should help increase inclusion in the banking system, he added. .

While banks take significant action, it remains to be seen how the changes will ultimately affect customers and how much banks will ultimately lose in overdraft fee revenue, Levy said.

“The question is, what will happen to the behavior of high-frequency overdrafts after these changes, and therefore the vast majority of fees, that come from them?” said Levy.

“If the changes mean that they have fewer overdrafts … and the number of fees paid by this group goes down, then we will see a serious reduction in fees and, therefore, a reduction in income for the banks.”

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Is San Antonio FloatMe a Safer Alternative to Payday Loans? https://vivenavalmoral.com/2022/02/07/is-san-antonio-floatme-a-safer-alternative-to-payday-loans/ Mon, 07 Feb 2022 22:56:22 +0000 https://vivenavalmoral.com/2022/02/07/is-san-antonio-floatme-a-safer-alternative-to-payday-loans/ FloatMe, a San Antonio tech startup that gives workers cash advances on their next paycheck, said it has increased $16.2 million from investors during its last fundraising. Overall, the startup has raised $49.1 million in funding since June 2019, including $25 million in debt funding, according to Crunchbase, which tracks investments in tech companies. FloatMe’s […]]]>

FloatMe, a San Antonio tech startup that gives workers cash advances on their next paycheck, said it has increased $16.2 million from investors during its last fundraising.

Overall, the startup has raised $49.1 million in funding since June 2019, including $25 million in debt funding, according to Crunchbase, which tracks investments in tech companies. FloatMe’s new investors include Iowa-based Active Capital and ManchesterStory.

“We’ve been under the radar,” FloatMe co-founder and president Joshua Sanchez said. “The funding is validation that we have grown significantly and allows us to expand.”

However, he declined to say how many customers use the app.

FloatMe, with 60 employees and an office in downtown Soledad Street, is part of a wave of online and mobile cash advance companies gaining traction during the coronavirus pandemic. They compete with payday lenders who sell high-interest loans to largely low-wage workers, a disproportionate share of whom are black and Hispanic.

FloatMe’s service is similar to financial technology, or fintech, offerings from companies such as silver lionwin and David.

Like its biggest rivals, FloatMe says it offers customers payday cash advances, not loans.

Customers pay a monthly fee of $1.99 and can request small advances – no more than $50 – which they repay when their next paychecks hit their bank accounts.

The startup Terms of use say users must be US citizens at least 18 years old and have a cell phone and email address. To create an account, customers authorize the company to access their bank account balance and transaction history.

They must also prove that they have received at least $200 in electronic payroll deposits three times before they can apply for advances.

FloatMe CEO Josh Sanchez markets his company as an alternative to payday lenders.

Jessica Phelps

Once approved, users can receive their advances through an automated transfer from the clearinghouse to their bank accounts in one to three business days. Or they can pay $4 for an “instant” money deposit within eight hours.

Fees for faster access to cash advances have caught the attention of industry watchdogs. Many workers who apply for cash advances are in financial straits and need money fast.

“This type of fee is meant to be voluntary, but really adds up for consumers,” said Yasmine Farahisenior policy adviser at the Center for Responsible Lending, a North Carolina-based nonprofit policy and research group.

FloatMe users can also receive offers from third-party companies for money management services or products — if they choose, according to the startup.

According to the terms of service: “In all cases, you will need to register to receive these offers from partners, and FloatMe may receive compensation from these partners for referring you to them. FloatMe is not responsible for the products and services offered by these partners.

Payday debt traps

The Federal Consumer Financial Protection Bureau describe a payday loan as “a short-term, high-cost loan, usually $500 or less, that is usually due on your next paycheck.” Loans are available in storefronts and online.

If borrowers do not repay their loans on time or at all, lenders can withdraw money from their bank accounts, sometimes resulting in overdraft fees. Payday lenders also sometimes send collection agencies after delinquent borrowers.

Payday loans have long been a big business in Texas.

The Center for Responsible Lending has to analyse the average annual percentage rates, or APR, for a $300 loan with 14-day repayment periods in each state. Data shows Texans can pay up to 664% APR — the highest in the nation — because the state has no interest rate caps to protect borrowers.

“Payday loans are marketed as a quick financial fix, but they’re actually a long-term debt trap,” Farahi said. “People will take out a loan thinking it’s a one-time loan to deal with a short-term crisis. But with all the fees and costs, they end up having to take out another loan and another loan.

Like his peers, Sanchez says FloatMe is not a payday lender.

“FloatMe is all about transparency,” he said. “We charge members $1.99 per month to access our personal finance management tools, overdraft alerts and other budget management features. Members can access the floats without having to pay the $1.99. There is no credit check. There is no interest and no hidden fees.

“We do not collect or store sensitive information (personal information),” Sanchez said. “We work with a third party to simply connect a member’s bank account. We do not sell any user data.

The company’s website says it uses Plaid, a California-based financial services company, to connect to customers’ bank accounts.

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