stay informed

Originally published: 23-Nov-22 06:31 ET

Updated: 23-Nov-22 06:36 ET

By Andrew Torgan, CNN

(CNN) – AAA predicts nearly 55 million people in the United States will travel this Thanksgiving holiday weekend. The 5 Things team also head out to spend time with family and friends, so we’re taking a few days off. We’ll be back on Sunday. Until then, here’s what you need to know to get up to speed and get on with your day.

Here’s what else you need to know Stay connected and get on with your day.

(You can get “5 Things You Need to Know Today” in your inbox daily. Sign up here.)

1. Walmart Shooting

At least six people were killed in a mass shooting at a Walmart in Chesapeake, Virginia, Tuesday night. The shooter is also dead, city officials said this morning. Officers responded to the store about 10:12 p.m. less than an hour before closing and found the victims and evidence of a shooting, Chesapeake Police Public Information Officer Leo Kosinski told CNN. Five patients are being treated at Sentara General Hospital in nearby Norfolk, Virginia, a spokesman for Sentara Healthcare told CNN affiliate WTKR. An update on their terms was not immediately available. “We’re only a few hours after the first incident, so everything is very fluid right now, very recent,” Kosinski previously said. A press conference is scheduled for 8 a.m. ET, the City of Chesapeake said on Twitter.

2. Trump

The Supreme Court on Tuesday cleared the way for the IRS to release former President Donald Trump’s tax returns to a Democrat-led House Committee. The Supreme Court’s move is a major loss for Trump, who has tried for years to shield the release of his tax returns and is currently the subject of multiple investigations. Trump’s legal team has constantly sought to keep his return a secret, turning to the Supreme Court, which consists of three of Trump’s nominees, after losing at the lower court level. Separately, a New York state judge set a trial date for October 2023 for the New York Attorney General’s $250 million lawsuit against Trump, his eldest children and the Trump Organization, alleging they were involved in a widespread fraud, which lasted over a decade and which the former President used to enrich himself.

3. Student Loans

The Biden administration is again extending the pause in federal student loan payments, a benefit that began in March 2020 to help people struggling financially due to the Covid-19 pandemic. This latest extension comes as the administration’s student loan forgiveness program continues to be tried in court. Officials had told borrowers that the program, which is worth up to $20,000 in debt relief per borrower, would be implemented before loan payments were scheduled to resume in January 2023. The pause will last up to 60 days after the dispute is resolved. If the program is not implemented and the litigation is not resolved by June 30, 2023, payments will resume 60 days after that, according to the Department of Education.

4. Tech Layoffs

Computer maker HP said on Tuesday it would lay off up to 6,000 employees over the next three years, becoming the latest tech company to significantly reduce its workforce amid fears of an economic downturn. The company announced the job cuts in a statement accompanying its lackluster quarterly report, in which it also said revenue fell more than 11% from the year-ago period. The news makes HP the latest in a growing list of once-high-flying tech companies to now announce major job cuts. Facebook parent Meta, Amazon and Twitter have all announced major layoffs in recent weeks.

5. Covid-19

The Biden administration has launched a critical six-week push aimed at boosting Americans’ Covid-19 booster shots ahead of the holiday season. Biden’s chief medical adviser, Dr. Anthony Fauci launched the campaign Tuesday during his final White House press briefing before retiring in December. The push comes as more than 35 million Americans have already received the updated, bivalent booster shot — including more than 16 million seniors, said White House Covid-19 coordinator Dr. Ashish Jha, during the briefing. But that’s a fraction of the 267 million Americans who have received their primary Covid-19 vaccine, according to the CDC. The campaign will focus on reaching seniors and communities hardest hit by Covid-19 by expanding access, raising awareness and more.

BROWSE BREAKFAST

We now know what Budweiser is doing with the beer it can’t sell at the World Cup

Budweiser plans to ship all unsold bud to the country that wins the tournament – provided that country doesn’t ban alcohol consumption.

A group of Indonesian islands are about to hit the auction block

For some billionaires, islands are like potato chips: you can’t just buy them one.

You can thank The Sims for the rise of luxury fashion in gaming

Luxury labels like Balenciaga, Burberry and Louis Vuitton want your avatars to look their best – at a good price, of course.

How to answer those dreaded personal questions at holiday get-togethers

Here’s what you should do before the buns fly.

‘Love Actually’ cast reunite for 20th anniversary TV special

All I want for Christmas is… oh you know the rest.

QUIZ TIME

Turkey is usually the centerpiece of Thanksgiving dinner. Which US state raises the most turkeys?

A Arkansas

B. Indiana

C.North Carolina

D Minnesota

Take CNN’s Thanksgiving Quiz here to see if you’re right!

TODAY’S NUMBER

$27 million

Here’s how much money Bob Iger could make after returning to the helm of Disney. Yes, $27 million is a lot of money, but it’s significantly less than the roughly $46 million he made in total compensation when he left the company late last year.

THE TODAY QUOTE

“I may or may not let other people judge the value of my achievements, but I want people to remember what I’ve done, which is that every day, through all these years, I’ve given everything I have and I still have.” never left anything on the field.”

– dr Anthony Fauci, during his final White House briefing before leaving his official positions. Fauci, the director of the National Institute of Allergy and Infectious Diseases and senior medical adviser to President Biden, has served under seven US presidents and became a household name in the early days of the Covid-19 pandemic.

TODAY’S WEATHER

Check your local forecast here>>>

AND FINALLY

How Ocean Spray harvests 220 billion cranberries a year

Before you slide that delicious, ridged cylinder of jellied cranberry sauce out of the tin onto a serving platter on Thursday, take a moment to learn where it came from. (click here to view)

The CNN Wire
& © 2022 Cable News Network, Inc., a Warner Bros. Discovery company. All rights reserved.

THE-CNN-WIRE & © 2022 CABLE NEWS NETWORK, INC., A TIME WARNER COMPANY. ALL RIGHTS RESERVED.

India’s banking sector’s investment-to-deposit ratio fell to a four-month low as banks allocate more of their existing funds to loans, which have higher yields than bonds.

Data from the Reserve Bank of India (RBI) showed that the investment-to-deposits ratio is now closer to 29%, compared with a recent peak of 30% recorded in August, suggesting banks have started to reallocate their deposits to higher-yielding loans when credit demand surges.

The investment to deposit ratio indicates the amount of deposits used by banks as investments mainly for lending. As credit growth has accelerated, banks have started to increasingly leverage their deposits. Credit growth is currently at 18%, a nearly 10-year high; However, deposit growth is almost half at nearly 10%. As a result, banks have raised deposit rates by 30 to 50 basis points. One basis point corresponds to 0.01 percentage points.

However, banks are cautious in their deposit hunt and picky about the term when offering a higher interest rate. Bank of Baroda (BoB) CEO Sanjiv Chadha, for example, warned of a broad-based hike in deposit rates and expressed confidence that deposit and loan growth will converge.

BoB’s larger competitor, SBI, has also been conservative in tracking deposits. Chairman Dinesh Khara said the bank had enough liquidity to go without raising interest rates on deposits.

Similar to its peers, SBI’s deposit growth of 10% lagged the 20% growth in prepayments. However, Khara said the bank has enough liquidity on a gross basis to fund the strong loan growth.

“We have 40,000,000 deposits and 30,000,000 advances. We also have 3.85,000,000 excess investments that can be liquidated to fund credit growth,” he said.

ICICI Securities said in a note following its India Financials Conference that banks are focused on expanding their granular deposit base as loan growth continues to grow faster than deposits.

“Corporate prices are improving as borrowing increases and excess liquidity is drained. Working capital is stable and some investment-driven demand drives incremental growth. Incremental NIMs get better as interest rate increases are passed on. Still, focus on accelerating the granular deposit engine will put pressure on deposit costs,” said ICICI Securities.

The Supreme Court has now denied another summary motion to block federal student loan forgiveness. Since Biden’s initiative to scrap $10,000 in student loans for most borrowers (and up to $20,000 for those who received Pell Grants) was announced, six lawsuits have threatened the plan.

Student Loan Forgiveness: Mark these 4 dates on your calendar now
The future of finance: Gen Z and their relationship with money

On Nov. 1, Judge Amy Coney Barrett denied an attempt to block the program launched by the Pacific Legal Foundation on behalf of two Indiana borrowers, CNBC reported. The two plaintiffs alleged that if some debts were forgiven, they would be financially harmed because they would incur state taxes on the forgiven student loan debt. A similar request was denied on October 20.

Though these attempts have had little effect, student loan forgiveness is still on hold due to a challenge by six Republican-led states. The six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — claimed they lacked congressional approval for the government’s actions. CNBC reported that the Eighth Circuit Court of Appeals issued a stay and paused the program while it considered the appeal.

About 26 million Americans have applied for student loan forgiveness, and the Biden administration has approved 16 million of the applications, the White House said Nov. 3. Borrowers are still encouraged to apply for forgiveness.

Take our poll: Do you think student loan debt should be forgiven?
More: 9 Bills You Should Never Put on Autopay

Abby Shafroth, director of the National Consumer Law Center’s Student Loan Borrower Assistance Project, told The Hill borrowers will soon have “a decision” from the Eighth Circuit. Legal experts also said the court’s decision could be crucial in determining whether the Biden administration can grant relief to federal student loan borrowers.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: Student Loans: Supreme Court Rejects Block of Biden’s Forgiveness Plans, So Why Is It Still on Hold?

Economic development

Banking executives discuss the benefits of credit products from the US Small Business Administration and the New Jersey Economic Development Authority.

By Anthony Vecchione, co-author on November 10, 2022

Banks in New Jersey are seeing strong demand for US Small Business Administration (SBA) and New Jersey Economic Development Authority (NJEDA) loans compared to the height of the COVID-19 pandemic.

“COVID hit and we switched to Paycheck Protection Program loans for a couple of years,” said Chris Kneer, first senior vice president division manager, SBA Lending for Valley Bank. “Now that we’ve got that under control, we’re back to building the SBA’s 7(a) program.

Industry experts say that participating in SBA and NJEDA loan programs is a win-win for banks.

Kneer claims that participating in an SBA-backed loan is an opportunity for banks to provide capital in ways other than standard lending products.

“It’s about access to capital for our borrowers and prospects,” he says. “These are [businesses] who for whatever reason are either not conventional customers or do not qualify for conventional financing.”

Thomas Pretty, Head of SBA Lending at TD Bank, comments: “Allow SBA loans [our] Bank to offer longer terms, and unlike many SBA lenders [we] can offer long-term fixed interest rates, which are particularly desirable in a rising interest rate environment.”

The SBA 7(a) loan program provides financial assistance to small businesses with special needs. This is a good option when real estate is part of a business purchase, but the loan can also be used for: Short and long-term working capital: refinancing current business debt; or purchase of furniture, fixtures and fittings.

According to the SBA, the maximum loan amount for a 7(a) loan is $5 million. Key eligibility criteria are based on what the company does to get its income, its credit history, and where the company operates.

Guiseppe Mastroeli, Executive Vice President, Business Banking Market Manager, M&T Bank, says the SBA program allows M&T to support more small businesses because the SBA guarantee mitigates risk. “By leveraging the SBA and partnering with local Community Development Centers (CDC), we can extend more lending to small businesses in the communities where we live and serve,” he says.

According to Pretty, SBA 7(a) loans are a great way to buy an existing business, start a business, buy a building or equipment, or refinance existing debt with longer terms and less money. Additionally, he says there will be no SBA origination fee for SBA loans under $500,000 in 2023.

In the meantime, SBA 504 loans are a great way to buy a building or equipment for a business with less money and up to 25-year payback and terms, he continues.

Meanwhile, the Certified Development Companies (CDC)/504 Loan Program provides long-term, fixed-rate financing for key property, plant and equipment that fuels business growth and job creation.

Valley’s Kneer says participation in these programs gives borrowers access to funds they might not otherwise have to grow their business.

“It also gives them the opportunity to build a relationship with a great bank,” he continues. “Many of our customers can start with an SBA loan and it grows into a long-term relationship where they can later qualify for traditional products.”

He says many of Valley’s SBA customers are new bank customers. “It’s an opportunity to tell them more about what we do, and since Valley is headquartered in New Jersey, it’s a perfect fit.”

According to Martin P. Melilli, Market President, Central New Jersey, TD Bank, “The benefits for TD Bank are that we can offer our customers and local business owners a very good alternative to traditional financing that in some cases has a lower interest rate and has a longer term. Without the programs of SBA or NJEDA, some business owners might not have been able to get traditional funding.”

NJEDA’s Premier Lender Program enables participating banks to extend loans at a higher loan-to-value ratio [ratios] allow as standard loan products due to NJEDA involvement in certain projects.

Under the Premier Lender program, NJEDA can provide the following loan participations/guarantees and line of credit guarantees:

• Up to 50% of the bank loan amount for loans in kind; maximum NJEDA participation of $2,000,000; maximum NJEDA guarantee of $1,500,000; total NJEDA commitment must not exceed $2,750,000.
• Up to 50% of the bank loan amount for working capital loans; maximum NJEDA participation of $750,000; maximum NJEDA guarantee of $1,500,000; Total NJEDA commitment must not exceed $2,250,000.
• Guarantee of up to 50% of the bank’s credit line; not exceed $750,000

Valley’s Kneer says 2022 will be a good year as credit expands. “We’re keeping a close eye on where the economy is going and making sure we talk to our borrowers about the different challenges that are there,” he says.

For the future, the banks in New Jersey are expecting a positive lending business next year. 

For more business news, go to NJB news now.

Related articles:

Low interest rates and high credit limits along with ease of payment management compared to multiple credit cards with different interest rates are driving the growth of the global personal loan market.

Allied Market Research published a report entitled: “Personal Lending Market by Type (P2P Marketplace Lending and Balance Sheet Lending), Age (Less than 30, 30-50, and Greater than 50), Marital Status (Married, Single, and Other), and Employment Status (Employed and Business): Global Opportunity Analysis and Industry Forecast, 2021– 2030.” According to the report, the global personal lending industry generated US$47.79 billion in 2020 and is estimated to reach US$719.31 billion by 2030, growing at a CAGR of 31.7% from 2021 to 2030.

With low interest rates and higher credit limits, personal loans are attracting a larger number of consumers, which is an important factor driving the market growth. Additionally, personal loans with a single monthly payment at a fixed rate are easier to manage than multiple credit cards with different interest rates, payment maturities, and other variables. These factors contribute to the growth of personal loan market. However, the growing number of bad debts among those taking out personal loans and higher fees and penalties for personal loans are some of the factors limiting the market growth.

Download sample report @ https://www.alliedmarketresearch.com/request-sample/7945

segment overview

The personal loan market is segmented into type, age, marital status, employment status and region. According to the type, the market is divided into P2P marketplace lending and balance sheet lending. Depending on the age, he is divided into under 30, 30-50 and over 50. Based on marital status, the market is segmented into married, single and other. By employment status, the market is segmented into salaried and corporate. The salary segment is further divided into male, female and other. Regionally, the market is analyzed in North America, Europe, Asia-Pacific and LAMEA.

competitive analysis

The personal loan market analysis includes leading personal loan companies such as American Express, Avant, LLC, Barclays PLC, DBS Bank Ltd, Goldman Sachs, LendingClub Bank, Prosper Funding LLC, Social Finance, Inc., Truist Financial Corporation and Wells Fargo. These players have developed various strategies to increase their market penetration and strengthen their position in the personal loan industry.

The most important influencing factors

Numerous advantages of personal loans

High fees and penalties

Technological advances in lending

Interested in sourcing the data? (Get full insights in PDF format – 300 pages) https://www.alliedmarketresearch.com/purchase-enquiry/7945

Main benefits for stakeholders

• The study provides an in-depth analysis of the global Personal Loans market share along with current trends and future estimates to illustrate the investment pockets ahead.
• The report provides information on the major drivers, restraints, and opportunities along with their impact analysis on the global Personal Loan market size.
• Porter’s Five Forces Analysis illustrates the strength of buyers and sellers operating in the personal loan market.
• A comprehensive analysis of the key segments of the industry helps to understand the personal loan market trends.
• The quantitative analysis of the global personal loan market forecast from 2021 to 2030 is provided to determine the market potential.

Highlights of the Personal Loan Market report

aspects	details
BY TYPE	REJECT P2P MARKETPLACE REJECT BALANCE SHEET
BY AGE	LESS THAN 3030-50 MORE THAN 50
BY FAMILY STATUS	MARRIEDSINGLE OTHER
BY EMPLOYMENT STATUS	SALARYMaleFemaleOtherBUSINESS
BY REGION	NORTH AMERICA (USA, Canada)EUROPE (UK, Germany, France, Italy, Spain, Netherlands, rest of Europe)ASIA-PACIFIC (China, India, Japan, Singapore, Australia, Rest of Asia Pacific)LAMEA (Latin America, Middle East, Africa)
Important market participants	AMERICAN EXPRESS, AVANT, LLC, BARCLAYS PLC, DBS BANK LTD, GOLDMAN SACHS, LENDINGCLUB BANK, PROSPER FUNDING LLC, SOCIAL FINANCE, INC., TRUIST FINANCIAL CORPORATION, WELLS FARGO

Download sample report @ https://www.alliedmarketresearch.com/request-sample/7945

Related reports:

Payday Loans Market: https://www.alliedmarketresearch.com/payday-loans-market-A10012

Open Banking Market: https://www.alliedmarketresearch.com/open-banking-market

Online Banking Market: https://www.alliedmarketresearch.com/online-banking-market

Florida Digital Lending Market: https://www.alliedmarketresearch.com/florida-digital-lending-market-A11092

About us:

Allied Market Research (AMR) is a full-service market research and business consulting arm of Allied Analytics LLP, based in Portland, Oregon. Allied Market Research provides global, mid- and small-sized companies with unmatched quality of “Market Research Reports‘ and ‘Business Intelligence Solutions’. AMR strives to provide business insights and advice to help its clients make strategic business decisions and achieve sustainable growth in their respective market space.

We are in professional business relationships with various companies and this helps us to unearth market data which help us create accurate research data tables and confirm the highest accuracy of our market forecasts. Pawan Kumar, CEO of Allied Market Research, is instrumental in inspiring and encouraging everyone associated with the company to maintain high data quality and help clients succeed in any way possible. All data presented in the reports we publish are extracted through primary interviews with top officials from leading companies in the relevant field. Our secondary data sourcing methodology includes extensive online and offline research and discussions with knowledgeable professionals and analysts in the industry.

Contact us:

David Korrea
5933 NE Win Silvers Drive
No. 205, Portland, OR 97220
United States
US/Canada (Toll Free):
+1-800-792-5285, +1-503-894-6022
UK: +44-845-528-1300
Hong Kong: +852-301-84916
India (Pune): +91-20-66346060
Fax: +1(855)550-5975
[email protected]

Network: www.alliedmarketresearch.com

Allied Market Research Blog: https://blog.alliedmarketresearch.com

Follow us on | Facebook | LinkedIn | youtube |

According to an industry expert, peer-to-peer investors can expect better quality loans and higher interest rates from platforms in the coming months.

Mike Carter (pictured), head of platform lending at Innovate Finance’s 36H Group, has predicted that the current economic turmoil will force all lenders to tighten their lending criteria. Banks have already started withdrawing some loan offers and raising lending rates in anticipation of further rate hikes.

While P2P lending platforms already have rigorous due diligence processes in place, Carter believes those processes will continue to be refined, which will result in higher-quality loans.

Continue reading: P2P offers the opportunity to generate institutional-size returns

“All platforms are currently tightening their lending criteria in anticipation of an economic downturn, so the loans that will be made in the coming months will be made to higher quality borrowers than before,” Carter said.

“Market prices for some loans are increasing with base rates across the lending market and this will be reflected in the P2P sector,” he added. “That’s why P2P lenders may also see higher interest rates in some cases.”

Some P2P lending platforms have already started increasing their investor returns. Loanpad has increased its rates monthly for the past six months, and in September Assetz Capital announced it would increase rates on all three of its access accounts.

Continue reading: Less than two months until the Peer2Peer Finance Awards!

Insider’s experts select the best products and services to help you make wise decisions with your money (here’s how). In some cases we receive a commission from our partners, but our opinion is our own. The conditions apply to the offers listed on this page.

• My wife and I had about $20,000 in student loans and car debt when we got married.
• We decided to use the debt snowball method to pay it all off, but realized we needed to earn more.
• We got promoted and took on side jobs and celebrated every milestone.

$20,000. That’s the amount of nonmortgage debt my wife and I carried into our marriage before we started spending money seriously. 15% of our net pay went toward student loans and car payments, and we only paid the necessities. We felt like we were stuck with debt until the terms of the loans expired, and by then we would likely have new debt to replace it as people were doing just that.

My wife was the more financially savvy half of our partnership at the time, as her family had a decent education in the basics of money management. I was a bit naïve about the whole money thing and was happy to let my wife take control of the financial direction of our new marriage.

Two big moments happened around the same time to change that. My wife encouraged me to learn more about money so that we could be equally responsible for our family’s financial decisions, and the school where I taught asked me to teach a financial math class for the upcoming school year.

Both were signs that I needed to get on board and learn about finance, which I did through many podcasts and books. The end result was a burning fire to pull us out of debt and embark on a journey to financial independence that included the potential for early retirement.

We have agreed on a debt repayment strategy

Our debt was fairly basic and there were many positives to build on. There was no credit card debt, we didn’t overstate our home, and when we bought new cars we bought some of the cheapest new cars on the market (a Corolla and a Civic). Our student loan debt totaled $12,000 and the rest was auto debt.

After seeing the snowball and debt avalanche methods, we decided to take a snowball approach to using early gains for motivation. This meant that we attacked our smallest debts first and then built up the largest ones by rolling the payment of the previous debt into the next as they were paid off.

Our fridge was adorned with a new poster showing each of our debts (three student loans and two cars), the total amount owed for each, and small fundraising thermometers to visually show our progress in paying off each one.

The chart made it a fun experience and kept us going when each month’s progress felt small or insignificant. Going by the map each day helped keep the fire burning to stick to our plan and not give up until it was all gone.

We have cut spending as much as possible

At its core, personal finance is really simple. Earn more than you spend and use that extra money (“the gap”) to work on growing your net worth.

In this case, paying off our debts was the best way to improve our wealth. The problem for us is that there wasn’t a gap when we started. We had inflated our lifestyles to the point where we used up our entire paychecks each month, with a minimal amount going to retirement accounts and nothing to savings.

We cut spending where we could, but there wasn’t much left to cut back then. We needed more income to fill the gap to aggressively repay our debt.

We found ways to earn more

Over the next 18 months, my wife and I increased our income from eight different sources. This included improving our income in our full-time jobs through professional development and job changes, as well as taking on part-time jobs, temping and starting our own businesses.

As a teacher with summers off and a therapist who sets her own schedule, we have had the time and flexibility to build these new sources of income and sustain them for a short period of time. My wife worked on a winery and took a part-time job as a school social worker. I wrote a curriculum for my school district and started tutoring math in the evenings.

My favorite sideline was refereeing girls lacrosse. While being the one in the middle of the field with the whistle might not sound enticing to you, this was a way I was able to make a great hourly rate of about $1 a minute and it had a built in exercise.

We identified and celebrated milestones

In the beginning it was easy. The first two student loans were only a few hundred dollars each, so they fell pretty quickly. After that it went slowly. The snowball of money we threw at the debt had grown, but it still only made a small dent each month, which was very demoralizing at times.

We found that if we could break down the big debt into smaller milestones to celebrate, we could keep the small, quick wins mentality alive.

The celebration usually consisted of a small treat for ourselves. Nothing that would derail our efforts, but rather something to reward us for our hard work and perseverance. It could be as simple as a sweet treat or a takeout instead of cooking.

We were smart about future debt

After we made the last payment 18 months from the start, it was decided to avoid future debt if possible.

We continue to use credit cards, but they are always paid in full each month to take advantage of the rewards.

We immediately began funding an emergency fund to cover events that could force us back into debt.

Instead of bloating our budget with all the money freed up from debt repayments, we continued to pay for cars to ourselves and put it in a high-yielding savings account. This enabled us to pay for a used car in 2021 without having to take out a long-term car loan.

We’ve also used high-yield savings accounts for things like Christmas gifts, annual HOA expenses, and vacations. Anything we can reasonably plan now, we’re doing.

Rob Phelan, CFEI, is a full-time high school teacher of personal finance and lives in Frederick, Maryland with his wife and son. He is the founder of The Simple StartUp, where he guides 10-18 year old entrepreneurs to start their first businesses, and recently published the children’s book M is for Money, which introduces 3-8 year olds. age-appropriate money words and normalizes conversations about money. You can connect with Rob on Facebook, Instagram, Twitteror LinkedIn.

Continue reading
read less

by Clark Kauffman, Georgia Recorder [This article first appeared in the Georgia Recorder, republished with permission]
October 19, 2022

An Iowa couple who unknowingly bought a critically ill dog on a loan with a 189% interest rate now want lawmakers to protect consumers from a similar experience.

Jeff and Jennifer Bowman, whose story was first reported by The Washington Post, bought a 12-week-old English Bulldog at a Petland store in Iowa City three years ago.

The pup, which they later named Zeke, was priced at $4,400. “They told us the price and I almost fell on the floor,” Jennifer Bowman recalled. The couple hadn’t planned on spending anywhere near that much money on a new dog, but with Zeke, she said, it was “love at first sight.”

“They put us in a little room where we could sit with Zeke and he could walk around and we just fell in love with him,” Jeff Bowman said.

Adding in taxes, a $300 “homecoming care kit” and an Iowa Hawkeyes dog collar, Bowman’s Petland owed a total of $5,001.07. The couple deposited $500 and signed papers with the help of Petland’s staff, who funded the remainder of the purchase through two separate loans — one for $1,500 and one for $3,000.

A Petland employee warned the couple about the interest they could face if they didn’t pay off the $1,500 loan within 90 days.

“They said, ‘Try to pay this off because after a certain point, the interest rate is going to go up,'” recalled Jeff Bowman. “But we didn’t know how much it would go up.”

“Rent-a-Bank” loans avoid government interest rate caps

Although interest rates in Iowa are capped at 36%, the Bowmans later discovered that the $1,500 12-month loan, which was provided through a company called EasyPay, provided that if they did not repay the loan within 90 days, an interest rate of 188.98% would be applied to the loan.

The loan documents, which include a federally-mandated Truth in Lending Act disclosure statement, clearly spell out the exact terms of the deal – which show the Bowmans would have to pay $1,827 in financing costs to borrow $1,500, giving a total repayment of equals $3,327. EasyPay automatically deducts $128 from the couple’s bank account every two weeks.

But that disclosure statement was one of several documents presented to the Bowmans that day, and the couple focused more on Zeke than the terms of the loan. Little did they know that Zeke had serious health issues that would result in multiple, costly trips to the vet that would affect her ability to repay the loan.

The higher interest rate was made possible by EasyPay processing the loan through Utah-based Transportation Alliance Bank. It’s a process animal welfare and consumer advocates call “rent-a-bank” and allows finance companies like EasyPay to route loans through overseas, state-regulated banks that don’t have to adhere to interest rate caps set by states.

The National Consumer Law Center says these “predatory” practices have led to hundreds of complaints.

Among them:

— A New Jersey consumer who bought a cocker spaniel and had to pay 152% interest, which was five times the New Jersey legal limit of 30%.

— A Georgia consumer who complained that the pet store had not told her that EasyPay’s financing charge had an interest rate of 180%. “My pup was supposed to be $2,500 (and) is now almost $7,000.”

– A Florida consumer who said he suffered credit damage after buying a puppy that immediately became ill and eventually died. “I only borrowed $2,200… I owe my credit report $5,500 on interest,” the consumer complained.

– Another Florida consumer bought a Shih Tzu puppy who died after the family incurred $1,280 in vet bills. After the puppy died, a debt collector kept calling to collect the loan.

Last year, Congress passed a resolution repealing a Trump-era rule enacted by the Office of the Comptroller of the Currency that facilitated such loans.

“In many states, these lenders are held in check by caps on how much interest they can charge,” President Joe Biden said at the signing of the resolution. “But some loan sharks and online lenders have figured out how to circumvent those limits… by partnering with a bank to circumvent the state cap and charging outrageous interest rates — some as high as 100 percent, which is amazing.” … The final administration let it happen, but we will not do it.”

Abolishing the OCC rule hasn’t stopped the Rent-a-Bank process – and proponents say additional action by the Federal Deposit Insurance Corp. and Congress are still required.

A coalition of consumer groups including Public Citizen, the Public Interest Research Group and the Consumer Federation of America have petitioned the FDIC, which regulates banks. The groups are urging the agency to stop the practice of banks serving as “fronts” for companies they view as predatory lenders.

Earlier this year, they wrote to the FDIC, stating, “FDIC-regulated banks help predatory lenders make loans at up to 225% APR that are illegal in almost every state … Rent-a-bank programs have in the History at FDIC banks has been thriving for a few years, and it’s about time that ended.”

Zeke dies, but collection agencies keep calling

The Bowmans say the financial impact of the loans has been significant for Zeke. “We almost lost our house,” said Jennifer Bowman.

Realizing the interest rates they could face if they didn’t rush to pay off the EasyPay loan, the couple sought help from Jeff’s mother, who used a credit card with a significantly lower interest rate to pay off the balance.

As difficult as that was, it paled in comparison to the emotional and financial struggles that Zeke’s health issues posed to the couple.

“Just a few days after we brought him home, he started bleeding from his bottom,” said Jennifer Bowman. A battery of diagnostic tests would eventually reveal that Zeke was suffering from Giardia, an intestinal infection caused by a microscopic parasite. Additional testing by a specialist showed that Zeke had an abnormal kidney and would probably not make it to the age of 5.

“It was awful,” said Jennifer Bowman. “I used to take him to puppy training classes but he couldn’t play too long or he would get exhausted. It was so hard to watch because he was so full of life and wanting to play. He was the best dog – just so happy.”

In February 2021, Zeke died of kidney failure at the age of 20 months. The veterinary notes describe a range of physical problems, including a history of allergic skin conditions, gastrointestinal disorders and respiratory problems. A vet later explained that Zeke’s death was a direct result of his “prior genetic and breeding history.”

The breeder has a history of violations

Zeke’s American Canine Association records show that he was born at Twin Birch Kennels, a kennel run by Lavern and Marietta Nolt of Charles City. According to U.S. Department of Agriculture records, the kennel has a number of regulatory issues.

The kennel’s most recent USDA inspection in June found multiple violations, including a failure to provide adequate veterinary care to four English bulldog puppies with weak hind legs and a failure to maintain proper identification and veterinary records.

In February, similar problems were identified by a USDA inspector who reported that several dogs at Twin Birch were not receiving adequate care, including a bulldog with a “large red growth” that covered a third of her right eye. “The dog was not examined by a veterinarian,” the inspector reported, and the kennel had no plans to have the condition diagnosed or treated.

Petland officials reimbursed the Bowmans for the full purchase price paid by Zeke, minus financing costs and some of the couple’s vet bills. After Zeke died, the Bowmans stopped paying the second of the two loans they received through Petland. To this day, Jennifer Bowman said, they continue to receive calls from a collection agency and their credit has taken a hit.

Federal legislation has stalled in Congress

A bill was introduced in Congress in 2019 and 2021 to create a permanent, national solution to the “rent-a-bank” problem by establishing a 36% interest rate cap that would apply to all lenders. However, this proposal has met with fierce opposition from the financial industry and has yet to be approved by Congress.

As federal action has stalled, some states have taken action. Illinois has banned high-interest lending, and California now bans online pet stores — regardless of their physical location — from assisting in funded purchases of dogs, cats, or rabbits.

As for EasyPay, the company acknowledges that its interest rates can be as high as 199%, but says it makes financing an option for people who wouldn’t even qualify for a loan otherwise.

“Many Americans are being left behind by the traditional banking and credit system,” the company told the Washington Post. “EasyPay facilitates financing options to ensure these consumers have a trusted and secure choice to access otherwise unavailable credit for urgent needs and discretionary needs.”

Elizabeth Kunzelman, vice president of Legislative and Public Affairs at Petland, said the Bowmans were “fully reimbursed” for Zeke’s purchase, and the store “went beyond the guarantee and even went back to the breeder to make sure the father.” and the mother were fine”. not bred again,” and then the store stopped buying from that breeder.

“The store decided to stop using EasyPay in February 2021, prior to the updated consumer credit policy, as it was not happy with the company’s terms,” ​​added Kunzelman.

As for the Bowmans, they now have a new dog — one from a friend, not a dealer — but they still want others to know about Zeke and the financial and veterinary risks involved with puppy mills and funding associated with pets.

“We contacted the Better Business Bureau, the US Department of Agriculture, the Attorney’s Office — just so many people,” said Jennifer Bowman. “We tried to get Zeke’s story out there so another family wouldn’t go through what we went through.”

This story first appeared in the Iowa Capital Dispatch, a sibling edition of the Georgia Recorder States Newsroom.

Georgia Recorder is part of States Newsroom, a network of news outlets supported by grants and a coalition of donors as a 501c(3) public charity. Georgia Recorder maintains editorial independence. If you have any questions, contact the editor, John McCosh: [email protected]. Follow Georgia Recorder on Facebook and Twitter.

What may have seemed Like an innovative May 2nd idea to boost start-up businesses in downtown Hollister by providing low-interest loans to restaurants, commercial/non-kitchen businesses, handicap upgrades, and sidewalk improvements, Hollister turned out not to The case was officials told the city council on Oct. 3 that only two applicants had filled out the loan documents. The city was willing to offer loans at 2% for up to 15 years.

At the May 2 meeting, the council directed city officials to establish a low-interest business loan program for all eligible businesses in the Downtown District. The goal of the program is to boost economic growth, increase inner-city vibrancy, and create jobs that improve the living conditions of the community’s residents.

“The business loan program is funded by the General Fund and was made possible by revenue replacement funding from the American Rescue Plan Act,” Dave Mirrione, deputy city manager, told BenitoLink.

On October 3, Council member Tim Burns called the plan to provide loans from a $2 million pool a case of “overthinking” by the council. To qualify for a loan of up to $50,000 for retail or non-kitchen businesses and up to $150,000 for restaurants, the building owner had to co-sign the loan. This proved to be an insurmountable sticking point in securing the loans, so that requirement was immediately removed.

Of the 12 people who showed interest in the program, only two applied; They were not satisfied with some of the details and asked the Council to consider changes.

Three new business owners told the council how they would advance their branches without the loans, but after pouring much of their own money into their businesses, they needed more than the city was offering and called for a different approach to the loan approval process.

Priscilla and Mike Jones, owners of Mmmm churros! referred to themselves as High school friends who have been married for 18 years and moved to Hollister from East San Jose in 2018. In July 2020 they opened their own shop specializing in handcrafted vegan churros in a variety of flavors. Because they operated as a hut Grocery store, they prepare the churros at home and sell them online. However, they cannot sell groceries at their new building at 7th and San Benito Streets, Priscilla Jone said.

She said they own the building so they don’t need a co-signer.

“The problem is that there is not enough money for the renovation that we need as a commercial kitchen,” she said. They had asked for the maximum amount of $150,000 but said they needed $300,000. “We’re not going to open with the $150,000 loan that we have.”

Mike Jones added: “We appreciate it [the $150,000 loan] won’t get us there. We would appreciate it if you could look into this and perhaps it can vary from business to business and business needs. Other companies have different requirements than we do. We invested in the building because we wanted to invest in Hollister.”

They said they are involved in community art projects, including a new one mural on the side of their building by the artist Venecia Prudencio.

“Our business brings about 25 jobs to the city,” Priscilla said. “Our contractor is ready to go. The city has the plans. As soon as we have the money, the contractor said it would be ready in three and a half months.”

Edgar and Diana Mayorca recently opened Café con Leche on Monterey Street across from the Superior Court. He said they had renovated the premises themselves and wanted to apply for a loan, but the builder would not co-sign.

“We put up our home as collateral and our equity is greater than $150,000,” Edgar Mayorca said. “At the moment we have four employees and we are doing well. We just need permission from you [for the $150,000 loan].”

Raul Escareno almost closed his Mangia Italian cuisine, located at 1709 Airline Highway, due to COVID. Not only did he manage to survive the pandemic, but he also planned to take over the closed Hollister Bar and Grill on the corner of San Benito and Fifth Street. His plans for an upscale restaurant, The balerhave been slowly relocating due to renovations required by the city, mostly in the scullery, where he installed new dishwashers and erected a wall to block a door into the lobby next door.

“Downtown can be a bit sloppy, but if we add more stores we kind of lift the vibe, we make it a little bit more family-oriented,” he told the council. “I put my other business down as collateral. I don’t owe her anything. I paid out $120,000 in cash in one year.”

It took the city two years to approve the permits while also investing its own money.

“I don’t need any help building it,” he said. “I need help with working capital. I would really appreciate it if you removed the landlord because once businesses like ours get up and rolling they will thrive. If you could remove the landlord right away, two of us could start. If I get the money now, I can open with a big bang.”

City Manager Brett Miller said the council instructed staff to record that the building owner must also sign the documents. He said building owners are not willing to take the risk when a restaurant goes out of business and they will have to dispose of the kitchen appliances if the next operation is not a restaurant.

The City Attorney considered other ways to secure the loans, such as B. An existing loan from the property owner with the city or the listing of equipment, houses or vehicles as security.

Burns was concerned that so few people had applied in five months. He asked if it would be more helpful if the city had an ombudsperson instead of a staff member to help applicants. He hinted that the task might be too challenging for a single employee.

He also admitted that he “led the charge” for insisting that property owners co-sign the loans, saying, “We have not been successful … we need to look at other alternative forms of security from the business owner versus the property owner.” .”

Councilwoman Dolores Morales suggested making loans more open so business owners could prioritize their needs over construction requirements. Councilor Rolan Resendiz asked how the city would recoup the cost of the Americans with Disabilities Act or Sidewalk Improvements Without Collateral. He said property owners, not business owners, would benefit from these improvements and wanted to reorganize the program because “we’re not going to recoup the cost of these improvements. I prefer to buy kitchen appliances and use them for things that we can use to recoup costs.”

Councilor Rick Perez said business owners should not worry about the cost of sidewalk repairs because the city owns sidewalks and it is the city’s responsibility to repair or make them handicapped accessible. He also said the loans had to be “timely” because “we can’t stop the flow of money because [without it] it keeps them and us from growing. We have to find the solution as soon as possible.”

The interest rate of 2% over 15 years remains unchanged according to Miller. Instead of requiring the homeowner to co-sign, applicants can now use collateral to guarantee the loans. The most important change in the program, Miller said, is “All loan applications over $150,000 must go to the council,” he said, adding that applications can be submitted immediately.”

We need your help. Support local, nonprofit news! BenitoLink is a nonprofit news website covering San Benito County. Our team is committed to this community and provides important, accurate information to our roommates. Local news is expensive to produce, and community support keeps the news moving. Please note support of BenitoLink, San Benito County Public Service, Nonprofit News.