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Wed Apr 22, 2020, 11:42 AM

Chase lawsuit for mishandling small business stimulus

https://www.usatoday.com/story/money/2020/04/20/small-businesses-sue-chase-bank-over-handling-stimulus/5163654002/

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In the suit filed on Sunday, a cybersecurity firm and event planning company accused Chase Bank of prioritizing small business borrowers who were seeking larger loan amounts rather than processing the government-sponsored loan applications on a first-come, first-served basis as advertised. 
The move meant that Chase and other banks would collect larger processing fees – nearly $6 billion in total – by frontloading the queue with businesses seeking higher loans, according to the lawsuit.

The businesses seeking lower loans were deprioritized, so many didn't get the aid they were entitled to, the lawsuit filed on behalf of small businesses said. 
The legal action is one in a series of lawsuits lodged by small businesses against big banks such as Wells Fargo, Bank of America and Bancorp citing unfair business practices and false advertising. 
The loans were a part of a $349 billion emergency small business lending program meant to keep businesses afloat and staffers employed in the wake of the coronavirus pandemic.

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"Chase 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 said.

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The proof of Chase prioritizing larger borrowers lies in numbers provided by the Small Business Administration, the lawsuit alleges. In the past three days, before the PPP loan money ran out, banks allegedly processed loan applications for $150,000 and under at twice the rate of larger loans...This would suggest that banks prioritized applications for the largest loans early on, otherwise "the percentage change of applications submitted in the last three days of the program would be consistent among all application types,"

6 replies, 976 views

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Reply Chase lawsuit for mishandling small business stimulus (Original post)
live love laugh Apr 2020 OP
mahina Apr 2020 #1
live love laugh Apr 2020 #2
mahina Apr 2020 #4
dweller Apr 2020 #3
mahina Apr 2020 #5
crickets Apr 2020 #6

Response to live love laugh (Original post)

Wed Apr 22, 2020, 11:46 AM

1. Thanks. Would you care to add some paragraphs of text, up to 4 copied, so we know what this says?

There’s a hesitancy on the part of some to click on links that you don’t have to click.

You know?

Thanks heaps.

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Response to mahina (Reply #1)

Wed Apr 22, 2020, 11:54 AM

2. Sure nt

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Response to live love laugh (Reply #2)

Wed Apr 22, 2020, 12:20 PM

4. Mahalo

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Response to live love laugh (Original post)

Wed Apr 22, 2020, 12:04 PM

3. what mahina said

+1000

✌🏼

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Response to live love laugh (Original post)

Wed Apr 22, 2020, 12:21 PM

5. That really sucks. I bet they weren't the only ones.

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Response to mahina (Reply #5)

Wed Apr 22, 2020, 12:27 PM

6. You know it. nt

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