ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

edition: July 2, 2024

NOTICE

I want members to be aware that a NEW service is in development.

This service will change the public' perception of the

Consumer Financial Services Industry

Stay tuned for updates!

Dan McCabe

Inquire: dan@afspassociation.com

Paving the Payments Future
Proven payment technology helps businesses pay and
get paid so they can focus on what matters most.

FLORIDA: Gov. DeSantis Signs Bill Reshaping Florida’s Consumer Finance Loan Landscape


Florida Governor Ron DeSantis Friday signed into law CS/HB 1347, a bill that significantly alters the state's consumer finance loan landscape.


This legislation, which builds upon previous efforts to regulate the industry, aims to attract more lenders to the Sunshine State while potentially impacting borrowers in both positive and concerning ways.


The newly signed CS/HB 1347, also known as the "Consumer Finance Loans" bill, introduces several key changes to the existing regulations governing consumer finance loans in Florida.


Increased Interest Rate Caps


The bill allows consumer finance loan companies to charge higher annual interest rates on certain loan amounts. Specifically:

・Up to 36% on the first $10,000 of principal

・Up to 30% on amounts between $10,000 and $20,000

・Up to 24% on amounts between $20,000 and $25,000


This represents a significant increase from the previous caps of 30% on the first $3,000, 24% on $3,000-$4,000, and 18% on $4,000-$25,000.


The bill expands the maximum loan amount that consumer finance companies can offer, raising the ceiling from $25,000 to $50,000.


Read more at TAMPA FREE PRESS

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU


I would like to share with you important information on Offer in Compromise.


When a taxpayer can't pay their full tax debt or if paying would cause financial hardship, they should consider applying for an Offer in Compromise. For assistance filing for an OIC from a legitimate representative, taxpayers are encouraged to check for a licensed enrolled agent or a reputable accountant in their area.



Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Emailjose.l.santiago@irs.gov

Canada to fund 'rent-to-own' program under C$2 billion housing plan


OTTAWA (Reuters) -Canada is moving ahead with a "rent-to-own" housing program, Prime Minister Justin Trudeau said on Tuesday, as he set out C$2 billion ($1.53 billion) worth of spending toward a previously announced plan to double homebuilding over the next decade.


The funding, earmarked in previous budgets, would go toward creating some 17,000 new homes across the country, including more rapid housing for the homeless or those at risk of becoming homeless, along with affordable and market-rate housing projects.


The program would also help housing providers develop and pilot a new rent-to-own model, aimed at creating a path for Canadians transition from renting to buying their first home, Trudeau said at a news conference in Kitchener, Ontario.


Read more at REUTERS

MONEYTRENDS 2024
October 28-30, 2024
Tampa, FL

Banking as a Service Isn’t Over. It’s the End of the Beginning.


Viewpoint: A look back at history suggests that the current wave of consent orders is the beginning of a new era for BaaS — not the end. Consider the trials and triumphs of The Bancorp and Pathward.


In recent months, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC) have issued a number of consent orders involving banks that participate in banking-as-a-service (BaaS).


This marks a crucial inflection point for fintech, which aims to expand financial access by distributing tailored banking products (e.g., bank accounts, credit cards) through apps and websites people already use. Today, embedded financial products are helping millions of small businesses and individuals get paid faster, obtain better financing terms, and take control of their money.


Some in the industry have interpreted the recent consent orders as the beginning of the end for fintech. They think regulators are telling banks to stop allowing their financial products to be distributed via tech companies like Uber and Shopify.


Read more at The Financial Brand

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Merchant Service Provider for Your Business

Notice of opportunities for public comment: CFPB


The CFPB requests public comment on a wide variety of topics to inform our work. These requests can include: proposed rules, requests for information, and Paperwork Reduction Act notices that give the public an opportunity to comment on potential information collections.


All these notices will be published in the Federal Register. You can submit comments online at Regulations.gov, by email, by mail, and by hand delivery/courier. For details, click on the link for the notice on which you’d like to comment. You don’t have to be an expert or a lawyer to give comments. We invite all individuals to share their views. 


You can also access notices with comment periods that have already closed and read comments posted to Regulations.gov.


Read more at Consumer Financial Protection Bureau (CFPB)

Accelerate Payments & Lower Processing Costs

People are Resorting to Pawn Shops for Extra Cash


Many feel that the cost of living is just too much to afford right now and to make ends meet, some are pawning and selling their valuable items.


Palace Jewelry and Loan in downtown Reno says the amount of money they loan has skyrocketed in the last year.


They say the main reason for that is people just need a few extra bucks to survive.


Pawning is when someone gives up an item of value in exchange for money.


Then, they can come back later and re-buy the item, plus interest, if it hasn't sold already.


Read more at 2NEWS NEVADA

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One Step Ahead: How Community Banks and Credit Unions Can Cut Fraud Losses


Community banks and credit unions have a serious threat on their hands with consumer fraud losses exceeding $10 billion last year.


Consumer fraud losses totaling more than $10 billion in 2023 — up 14% over the past year — should be a wake-up call to community banks and credit unions that fraud is a serious threat. Unfortunately for affected financial institutions, fraud’s true cost can be up to four times the cost of a fraudulent transaction itself. According to LexisNexis, every dollar lost to fraud actually costs U.S. financial institutions $4.23 when you consider costs incurred to investigate the claim, legal and other fees and external recovery expenses.


To curtail these costs, it is more important than ever to combat fraud before funds are exploited — and innovations in proactive fraud detection technology can help. With these tools and a proactive strategy, you can protect your institution: Not only from financial losses but also from reputational damage and regulatory scrutiny.


Read more at The Financial Brand

Dreher Tomkies LLP
PROVIDING SERVICES TO THE
FINANCIAL SERVICES INDUSTRY NATIONWIDE

The CFPB is working to reinforce the foundation of a fair, nondiscriminatory and competitive mortgage market: CFPB


HMDA Data and Enforcement Actions Reveal Inaccurate Data Reporting Practices


The Home Mortgage Disclosure Act (HMDA) requires mortgage lenders to report data about the loans and applications they receive and the loans they originate. These data allow regulators and the public to assess whether mortgage lenders are meeting the housing needs of their communities.


HMDA can be an effective, quantitative tool for uncovering discrimination, but it cannot work without complete and accurate data. Unfortunately, some lenders fail to report HMDA data, or even intentionally report inaccurate data, despite their obligations under federal law. This harms the entire market, including law-abiding mortgage lenders and families who may be put at risk of illegal discrimination.


The CFPB takes action against lenders providing bad HMDA data

In the last year, the CFPB used its enforcement authority to hold two major lenders accountable for failing to report complete and accurate HMDA data.


Read more at Consumer Financial Protection Bureau (CFPB)

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Financial education won’t close the wealth gap, but these 3 things will


Zest AI’s Aaron Long observes that more than 43 million people in the United States, who are finding it very difficult to pay household bills.


Growing up in the 1980s in a Black household in St. Louis, MO, my dreams were a lot smaller because I didn’t know how big they could be. Living paycheck-to-paycheck creates two main disadvantages that make it hard to dream big. At the household level, wealth dictates a child’s education and environment, and if those things don’t improve, it kicks off a vicious cycle that makes it nearly impossible to get out of poverty and dream of a better life. Not to mention the mental toll it can take.


Unfortunately, that’s the reality of more than 43 million people in the United States, who are finding it very difficult to pay household bills. Even in less expensive states like Arkansas, experts say the salary needed by two working adults to comfortably raise two children is up to $180,794.  


Read more at FAST COMPANY

ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
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