Help Center

ABI Blog Exchange

On Wednesday, Google posted a blog on its Public Policy Blog entitled “An Update to Our AdWords Policy on Lending Products.” According to that post and effective July 13, 2016, Google will ban ads for payday loans and some related products from their ad systems. Google defines these loans as those where payment is due within sixty (60) days of issue. In the United States, the ban will also apply to loans with an APR of 36% or higher. The ban will not apply to companies offering mortgage loans, car loans, student loans, commercial loans, or revolving lines of credit such as credit cards. Google Protecting Users from “Harmful Financial Products”

Read More from: Bonds & Botes, P.C.

1 week 3 days ago
The Office of the Comptroller of the Currency's recent white paper is a great first step in promoting innovative collaboration between banks and fintech, but companies need clearer guidelines on what regulators expect of them.

Read More from: BankThink

1 week 3 days ago
On Monday, Pacific Sunwear of California Inc. will look to move a step closer to exiting bankruptcy protection when it asks a judge for approval to send out its reorganization plan to creditors for a vote. The retailer filed its so-called disclosure statement, or plain-language outline of its bankruptcy plan, when it sought chapter 11 protection in April. Unsecured creditors and certain term-loan lenders will be allowed to vote on the plan. Pacific Sunwear has roughly $60 million in unsecured debt, including claims for unpaid rent and leases, court papers show. The teen retailer will also seek approval from Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court in Wilmington, Del., to use the rest of a $100 million bankruptcy loan. The day after filing for bankruptcy, Pacific Sunwear won approval to use up to $62.5 million of the loan, which is provided by a group of existing lenders led by Wells Fargo NA. The retailer said in court papers it plans to use the loan to pay back an existing loan in full, professional fees related to the case and to keep stores open through the bankruptcy process. Earlier this month, Pacific Sunwear won approval to move forward with plans to test its restructuring proposal at auction. The retailer has a June 15 deadline to receive bids, and if needed, will hold an auction on June 22.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
The pervasiveness of consumers' credit problems highlights why the Consumer Financial Protection Bureau's upcoming short-term lending rules should avoid unintended consequences.

Read More from: BankThink

1 week 3 days ago
My blog is more of a heart-felt reflection about the struggles of owing medical bills rather than a scholarly review of a bankruptcy topic.  I personally know several people juggling huge amounts of medical bills and how much they struggle and worry about paying for their or their dependent’s needed medical care.  I meet with clients daily who have these same struggles.  It puts a further toll on their health and significantly impacts their relationships with spouses, family, friends and their work life. Medical Insurance Woes The struggle is just as real for those who have medical insurance as those who do not.  The amount of the money owed may be more if you do not have insurance but none the less, the out-of-pocket amount needed when you do have insurance can be just as daunting.  Most of the time with medical insurance you have to meet your deductible and then once it is paid; you have a percentage of the bill you still must pay.  Although there is a cap in most cases, that cap can be rather large.  A common amount I hear is a $10,000.00 out-of-pocket maximum for a family.  Most people I talk to do not have an extra $10,000.00 just sitting around in their rainy day fund; or if they do, it would wipe them out completely.

Read More from: Bonds & Botes, P.C.

1 week 3 days ago
Receiving Wide Coverage ... Swift Attack: Swift has reported a second attack involving its messaging system, this time targeting an unidentified commercial bank. Details emerged as investigators continue trying to solve the $81 million cyberheist involving the New York Fed and the Bangladesh central bank. This second attack suggests those behind it were sophisticated in their strategy and did not depend on weaknesses in the Swift system. In both incidents the thieves had at least oneÂ...

Read More from: BankThink

1 week 3 days ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37700261/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37700261/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37700261/smartcrop?height=853&width=1280" caption="A 20-megawatt photovoltaic solar power generation facility owned by SunEdison is shown in Hemet, Calif. " credit="Reuters" placement="Inline" suppressEnlarge="false" ] Bondholders of TerraForm Global Inc., a publicly traded spinoff of bankrupt solar-energy company SunEdison Inc., issued a default warning. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Education company Education Management Corp. wants a reversal of a ruling protecting minority bondholders, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Authored by Josh FBy:  Edward L. Kelly and Karl R. Gruss Many settlement agreements contain mutual releases by the parties of claims against each other.  For institutional lenders, workouts of defaulted loans often result in the execution of such agreements by the parties.  When drafting any release language, lenders would be wise to include language restricting the effect of the release to the subject matter at issue.  Failure to do so may result in unintended consequences, potentially discharging a borrower not only from its obligations relating to the loan transaction in question, but from all debts and obligations of the borrower to the lender.  As discussed in Wells Fargo Bank v. Gonzalez, but for a procedural error by two homeowners, one lender nearly learned a hard lesson by executing a general release.

Read More from: Florida Banking Law Blog

1 week 4 days ago
Today we’ll begin with a two-part question: When do you suppose you could (i) hold a debtor’s property hostage without running afoul of the automatic stay and (ii) also collect on an administrative expense for postpetition rent for leased space used to store such property? If you don’t already know the answers to the above questions, perhaps an overview of a recent decision from the Bankruptcy Court for the District of New Jersey will provide some insight. Before the court in In re Sussex SkyDive, LLC were a motion for payment of postpetition rent by the debtor’s landlord, When Pigs Fly, LLC (what a name!), and an objection and counterclaim of the debtor for damages for the landlord’s violation of the automatic stay.
1 week 4 days ago
The distributed ledger technology has an answer for updating every core function of the antiquated financial system.

Read More from: BankThink

1 week 4 days ago
Small-scale financial services companies such as storefront lenders and local money transmitters which use technology should have a choice of whether they are regulated by a state or federal regime.

Read More from: BankThink

1 week 4 days ago
Receiving Wide Coverage ... Kerry Meets with European Banks: U.S. Secretary of State John Kerry met with European banking leaders Thursday to urge them to increase lawful business ties with Iran and ensure them they won't be punished for doing so. The visit is part of a push to ensure Tehran receives the relief the U.S. pledged in January. Executives at Standard Chartered, HSBC, Barclays, Deutsche Bank, BNP Paribas, Santander, Lloyds Banking Group and Royal Bank...

Read More from: BankThink

1 week 4 days ago
Amit Dave/Reuters
What Is India’s New Bankruptcy Code? India currently has multiple laws to deal with insolvency, which leads to significant delays in winding up a company. The Bankruptcy Code will consolidate the existing framework and create a new institutional structure. The new law will also likely create a new class of insolvency professionals who will help sick companies and banks with a smooth takeover of the insolvent company and manage the liquidation process. The bill also proposes the setting up of a new entity, the Insolvency and Bankruptcy Board of India, which will regulate insolvency professionals and information companies — those which will store all the credit information of corporates. The Bankruptcy Code proposes two authorities to deal with insolvency. The National Company Law Tribunal will adjudicate cases for companies and limited liability partnerships, while the Debt Recovery Tribunal will do the same for individual and partnership firms. How Will a Company Be Liquidated? An insolvency resolution plan has to be approved by 75% of voting-share creditors. Once the plan is approved, it would also require the sanction of the adjudicating authority. During the insolvency resolution period, the management of the debtor is placed in the hands of an resolution professional.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Energy producer Penn Virginia Corp. filed for chapter 11 bankruptcy protection Thursday, in the latest oil-patch bankruptcy driven by sustained low energy prices, The Wall Street Journal reports. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”) A Dallas judge ruled that former billionaire Sam Wyly committed tax fraud by shielding more than $1 billion in family wealth in offshore trusts, WSJ reports. Oil and gas producer Linn Energy filed for chapter 11 bankruptcy Wednesday after reaching a deal with lenders to restructure its $8.3 billion debt load and obtain $2.2 billion in fresh financing, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
 “Do not go out hastily to argue your case; Otherwise, what will you do in the end, When your neighbor puts you to shame?” –Prov. 25:8
By: Donald L. Swanson It now seems obvious that the Archdiocese of Milwaukee overplays its hand after receiving a favorable ruling from the U.S. District Court in Milwaukee. Here is a chronology: –On January 4, 2011, the Archdiocese of Milwaukee files its voluntary Chapter 11 Petition. –On June 28, 2011, the Archdiocese of Milwaukee files a lawsuit asking the Bankruptcy Court for a declaration that it’s $55 million Cemetery Trust fund is off-limits from creditor claims. –On January 17, 2013, the Bankruptcy Court rules against the Archdiocese on summary judgment, and the Archdiocese appeals to the U.S. District Court. –On July 29, 2013, the U.S. District Court reverses, ruling in favor of the Archdiocese, and the Official Creditors Committee appeals to the Seventh Circuit Court of Appeals. –On March 9, 2015, the Seventh Circuit Court of Appeals agrees with the Bankruptcy Court and reverses the U.S. District Court.  The Archdiocese begins its appeal process to the United States Supreme Court James I. Stang — founding partner of the Pachulski, Stang, Zeihl & Jones law firm of Los Angeles

Read More from: Mediatbankry

1 week 4 days ago
Student Loan Debt would be enough of a problem How much Student Loan Debt does this grad have? even if it were not so difficult to figure out how and where to make payments. And, now there is data that many students do not even know how much Student Loan Debt they owe.  ): The Face Book meme photo talks about “educated students.” Should graduates know how much Student Loan Debt they have? Well, uh, yeah.  I would think it would not take that many math classes to figure this out. Heck, just do an internet search for a loan repayment calculator. J. Maureen Henderson, writing for Forbes online, from a Citizens Bank survey:
• 45% of survey respondents didn’t know what percentage of their salary went to paying off their loans. • 37% were unaware of the interest rate on their loan. • A very oblivious 15% were even unaware of how much they owe. . 44% claimed not to fully understand the difference between federal and private loans.
Ouch.  You know what they say.  Denial is not a river in Egypt. If you do not know your situation, how can you handle it?  How can you budget without knowing what your own student loan debt is?

Read More from: Discharge Student Loan

1 week 5 days ago
A recent study found that most Americans are not realistic when it comes to estimating the amount of money they will need during retirement. The cost-of-care study, conducted by Genworth Financial, a major long term care insurance provider, estimated that the median cost to hire someone who can assist with household tasks is $3,861 per month, while the cost of a full-time home health aide is $3,813 per month. The problem is that a majority of current US workers underestimate just how expensive it will be for them to get this assistance in the future when they eventually retire from the workforce. In fact, approximately 80 percent of survey respondents believed that getting in-home help during their Golden Years would be half as expensive as it actually will be. The reality is that most people will need a little help around the household as they get older and performing daily tasks becomes more and more difficult. Many people end up going to nursing homes or other health care facilities, but this can often be cost prohibitive. Moreover, a lot of individuals who have spent their entire lives taking care of themselves don’t want to lose their independence by changing residences and going to a nursing home. When it comes to remaining at home and paying for a little assistance with daily tasks, however, the costs can often be overwhelming – especially for someone who is struggling to get by on dwindling retirements savings.
1 week 5 days ago
While rockstars such as Iggy Pop and Nikki Sixx of Mötley Crüe were infamous for outlandish rider requests while on tour, perhaps nobody is more notorious for their demands of concert promoters than Van Halen.  In its heyday, the band famously stipulated in a 53-page list of rider requests that concert promoter provide backstage, among other things, herring in sour cream, two large bars of ivory soap, and M&Ms with the caveat that there be “ABSOLUTELY NO BROWN ONES”.  If brown M&Ms were found, Van Halen would not perform. 
1 week 5 days ago
[wsj-responsive-image P="//si.wsj.net/public/resources/images/BN-NY794_money_P_20160510170830.jpg" J="//si.wsj.net/public/resources/images/BN-NY794_money_J_20160510170830.jpg" M="//si.wsj.net/public/resources/images/BN-NY794_money_M_20160510170830.jpg" credit="istock" placement="Inline" suppressEnlarge="false" ] The instructions from Congress for how a struggling student loan borrower can attempt to leave that debt behind in bankruptcy contains one word that can have two meanings. The resulting ambiguity caught the attention of Emory University law professor Rafael Pardo more than a decade ago, prompting him to push for bankruptcy judges to interpret the one word—“undue”—more softly. Doing that would make it easier for bankrupt people to cancel big student loan bills. And it is what Congress intended, Prof. Pardo concluded after scouring federal law for other instances when lawmakers wrote the word. Prof. Pardo revived his theory most recently in a closely watched case of an unemployed Massachusetts man, Robert Murphy, who successfully canceled more than $240,000 in student loan debt from putting three kids through college. His case settled before First U.S. Circuit Court of Appeals judges ruled, but his argument goes like this:

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
Ideas on the table for ending the too-big-to-fail problem won't work, so the only solution is a "leverage" ratio and continuous exams to ensure big banks never get in trouble in the first place.

Read More from: BankThink

1 week 5 days ago

Pages