we just new it would be wells Fargo
Apr 20, 2020 17:25:01 #
Lawsuit alleges Wells Fargo unfairly shuffled Paycheck Protection Program applications
Dalvin Brown
USA TODAY
A California-based company filed a class-action lawsuit against Wells Fargo citing unfair actions against some small businesses seeking government-sponsored c****av***s relief under the Paycheck Protection Program.
In March, the Treasury Department announced the $349 billion forgivable loan plan for small businesses that helps them pay employees during the ongoing C****-** crisis. The fund ran out of money on Friday.
The lawsuit filed on behalf of small business owners on Sunday alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government's small business agency has said that PPP loan applications would be processed on a first-come, first-served basis.
Save better, spend better:Money advice delivered right to your inbox. Sign up here
The move by Wells Fargo meant that the bank would receive millions more dollars in processing fees, according to the lawsuit.
"Making matters worse, Wells Fargo concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money," the lawsuit filed in California alleged.
Wells Fargo has said that fees generated through the program will be distributed as charitable grants to nonprofits that support small businesses.
The checks are flowing:Here's how Americans are spending c****av***s stimulus payouts
The filing against Wells Fargo is one in a series of lawsuits lodged against big banks on behalf of small businesses late Sunday. Wells Fargo denied USA TODAY's request for comment on the lawsuit.
The big bank said on April 5 that it was committed to serving small businesses with fewer than 50 employees under the PPP, which is intended to incentivize American small businesses to avoid laying off workers by offering up to $10 million in forgivable loans.
"While all businesses have been impacted by this crisis, small businesses with fewer than 50 employees and nonprofits often have fewer resources," Wells Fargo CEO Charlie Scharf said in a press release earlier this month. "Therefore, we are focusing our efforts under the Paycheck Protection Program on these groups."
Retail is struggling:Neiman Marcus could file for bankruptcy as early as this week, report says
The plaintiff alleges that evidence of Wells Fargo's foul play lies in data released by the U.S. Small Business Association. The SBA report outlines the PPP loans that were processed and indicates when the t***sactions occurred.
The plaintiffs call into question a comparison between loans processed at the start of the program – April 3 to April 13 – versus loans processed just before the program ran out of money between April 13 and April 16.
"In the last three days of the PPP—banks processed loan applications for $150,000 and under at twice the rate of larger loans," the lawsuit said.
This would allegedly suggest that banks front-loaded applications for the largest loans, otherwise "the percentage change of applications submitted in the last three days of the program would be consistent among all application types," the plaintiffs said.
The lawsuit comes just days after the sweeping business rescue program ran out of money on Friday, less than two weeks after launching, as businesses raced toward a lifeline to avoid collapsing under the financial issues caused by the p******c.
Before running dry, the program approved more than 1.6 million applications for employers.
Follow Dalvin Brown on Twitter: @Dalvin_Brown.
Share your thoughts with USA TODAY
Fill out the form below or through this link for possible inclusion in USA TODAY's continuing C****-** coverage.
Dalvin Brown
USA TODAY
A California-based company filed a class-action lawsuit against Wells Fargo citing unfair actions against some small businesses seeking government-sponsored c****av***s relief under the Paycheck Protection Program.
In March, the Treasury Department announced the $349 billion forgivable loan plan for small businesses that helps them pay employees during the ongoing C****-** crisis. The fund ran out of money on Friday.
The lawsuit filed on behalf of small business owners on Sunday alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government's small business agency has said that PPP loan applications would be processed on a first-come, first-served basis.
Save better, spend better:Money advice delivered right to your inbox. Sign up here
The move by Wells Fargo meant that the bank would receive millions more dollars in processing fees, according to the lawsuit.
"Making matters worse, Wells Fargo concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money," the lawsuit filed in California alleged.
Wells Fargo has said that fees generated through the program will be distributed as charitable grants to nonprofits that support small businesses.
The checks are flowing:Here's how Americans are spending c****av***s stimulus payouts
The filing against Wells Fargo is one in a series of lawsuits lodged against big banks on behalf of small businesses late Sunday. Wells Fargo denied USA TODAY's request for comment on the lawsuit.
The big bank said on April 5 that it was committed to serving small businesses with fewer than 50 employees under the PPP, which is intended to incentivize American small businesses to avoid laying off workers by offering up to $10 million in forgivable loans.
"While all businesses have been impacted by this crisis, small businesses with fewer than 50 employees and nonprofits often have fewer resources," Wells Fargo CEO Charlie Scharf said in a press release earlier this month. "Therefore, we are focusing our efforts under the Paycheck Protection Program on these groups."
Retail is struggling:Neiman Marcus could file for bankruptcy as early as this week, report says
The plaintiff alleges that evidence of Wells Fargo's foul play lies in data released by the U.S. Small Business Association. The SBA report outlines the PPP loans that were processed and indicates when the t***sactions occurred.
The plaintiffs call into question a comparison between loans processed at the start of the program – April 3 to April 13 – versus loans processed just before the program ran out of money between April 13 and April 16.
"In the last three days of the PPP—banks processed loan applications for $150,000 and under at twice the rate of larger loans," the lawsuit said.
This would allegedly suggest that banks front-loaded applications for the largest loans, otherwise "the percentage change of applications submitted in the last three days of the program would be consistent among all application types," the plaintiffs said.
The lawsuit comes just days after the sweeping business rescue program ran out of money on Friday, less than two weeks after launching, as businesses raced toward a lifeline to avoid collapsing under the financial issues caused by the p******c.
Before running dry, the program approved more than 1.6 million applications for employers.
Follow Dalvin Brown on Twitter: @Dalvin_Brown.
Share your thoughts with USA TODAY
Fill out the form below or through this link for possible inclusion in USA TODAY's continuing C****-** coverage.
Apr 20, 2020 18:55:21 #
no propaganda please
Loc: moon orbiting the third rock from the sun
Lonewolf wrote:
Lawsuit alleges Wells Fargo unfairly shuffled Payc... (show quote)
I have to wonder about the reasoning capacity of someone who heads the post
we just new it would be wells Fargo
How about- We just knew it would be Wells Fargo.
Apr 20, 2020 18:56:02 #
Lonewolf wrote:
Lawsuit alleges Wells Fargo unfairly shuffled Payc... (show quote)
Don't worry, you'll find some way to spin this to blame President Trump.
Apr 20, 2020 18:58:29 #
no propaganda please wrote:
I have to wonder about the reasoning capacity of someone who heads the post
we just new it would be wells Fargo
How about- We just knew it would be Wells Fargo.
we just new it would be wells Fargo
How about- We just knew it would be Wells Fargo.
my k was broke just got it fixed trump broke it
Apr 20, 2020 19:01:57 #
no propaganda please
Loc: moon orbiting the third rock from the sun
Lonewolf wrote:
my k was broke just got it fixed trump broke it
Is that a version of "The dog ate my homework?"
Apr 20, 2020 19:11:17 #
no propaganda please wrote:
Is that a version of "The dog ate my homework?"
yep never worked for me nor the alarm clock didn't go off. told a boss once i didn't come because i decided to sleep a few hours he patted me on the back
Apr 20, 2020 19:27:44 #
no propaganda please
Loc: moon orbiting the third rock from the sun
Lonewolf wrote:
yep never worked for me nor the alarm clock didn't go off. told a boss once i didn't come because i decided to sleep a few hours he patted me on the back
Don't need an alarm clock, The dogs wake us up at 5:45 every day, different dogs over the years but the same time required.
Apr 20, 2020 22:33:48 #
no propaganda please wrote:
Don't need an alarm clock, The dogs wake us up at 5:45 every day, different dogs over the years but the same time required.
Funny how dogs know time
Apr 21, 2020 11:34:58 #
FallenOak
Loc: St George Utah
Lonewolf wrote:
my k was broke just got it fixed trump broke it
He also broke the n on broken
Apr 21, 2020 12:04:53 #
Apr 21, 2020 12:45:23 #
no propaganda please
Loc: moon orbiting the third rock from the sun
FallenOak wrote:
He also broke the n on broken
He claims he really meant broke, so perhaps it is his understanding of the English language that is unique. You break a mirror then it becomes broken. Unfortunately for us old folks all we have to do to break a mirror is to look at it. It then breaks itself.
Apr 21, 2020 12:48:28 #
no propaganda please wrote:
He claims he really meant broke, so perhaps it is his understanding of the English language that is unique. You break a mirror then it becomes broken. Unfortunately for us old folks all we have to do to break a mirror is to look at it. It then breaks itself.
What is your goal in life to prove just how petty you are ,if that's the case you have done a good job!
Apr 21, 2020 12:56:41 #
no propaganda please
Loc: moon orbiting the third rock from the sun
Lonewolf wrote:
What is your goal in life to prove just how petty you are ,if that's the case you have done a good job!
Apparently you cannot take some light kidding. So be it. I will do back to totally ignoring you, as do a lot of other people on OPP.
Apr 21, 2020 13:37:31 #
no propaganda please wrote:
Apparently you cannot take some light kidding. So be it. I will do back to totally ignoring you, as do a lot of other people on OPP.
you march with the t*****rs of this country anyway you don't even listen to trump if you did you would change sides immediately
Apr 21, 2020 15:21:04 #
no propaganda please wrote:
He claims he really meant broke, so perhaps it is his understanding of the English language that is unique. You break a mirror then it becomes broken. Unfortunately for us old folks all we have to do to break a mirror is to look at it. It then breaks itself.
Lol that's for sure. I've been covering mine
If you want to reply, then register here. Registration is free and your account is created instantly, so you can post right away.