Several large banks have been sued by small businesses who say large business loans for coronavirus relief were prioritized over small firms, who were then unable to access the much-needed funds.
Wells Fargo, Bank of America, JPMorgan Chase US Bankcorp were named in the lawsuit accusing them of processing applications for the largest loan amounts due to the massive fees they would generate, vs. processing them on a first-come-first-served basis as the Trump administration said would happen, according to Bloomberg.
Banks earned origination fees of 5% on loans up to $350,000; 3% on loans between $350,000 and $2 million; and 1% on loans between $2 million and $10 million. That means they earned $17,500 for processing a $350,000 loan, compared to $100,000 for a $10 million loan. -Bloomberg
The lawsuits, filed Sunday in Los Angeles federal court, claims that thousands of small businesses trying to apply for the Paycheck Protection Program administered by the Small Business Administration were left with nothing.
JPMorgan said in a FAQ on their website that small businesses received over 2x as many loans as the rest of its clients combined, while other banks had no comment, according to the report.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
the lawsuits are going to flying after this corona scam is over
ReplyDeleteWells Fargo sounds like a reputable kind of bank. When they step in it, it's with both feet!
ReplyDeleteWells Fargo is a Criminal Bank !!! Check your History fool !!! They were
ReplyDeleteExposed many times for breaking the Law !!!
We all need to SUE the banks that won't Release our Unemployment $$ !!!!
ReplyDeleteTheir excuse you have no card , so they will not release it, Don't Fly !!!!
Bank of America > Salisbury , MD 21801 !!!!
All banks are crooks, so are insurance companies. They are always looking for more ways to "fee" you to death, create loopholes to rob & screw you, just like the government.
ReplyDeleteThey use disclaimer, teams of lawyers and red tape/bureaucracy to dodge and weave all accountability.
The little guys are used to this, small businesses are the only truly hard working group because they have to work hard to survive.
CALLING YOU OUT BANK OF AMERICA >> SALISBURY, MD 21801 !!!!
ReplyDeleteAll you are doing is Holding people's $$$ as long as you can to collect the
interest on $$$ that is NOT yours !!! Plain & Simple FACT !!!
No damn Card was needed to Release their $$$ just an ID that's it !!!!
The card is JUST for the ATM like any other bank card !!!