Lawsuits Claim Banks Failed to Pay PPP Agent Fees
Last Updated on October 6, 2020
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter.
Check back for any potential updates and take a look at our open investigations here. The information on this page is for reference only.
Case Update
- October 5, 2020 – Investigation Closed
- Thank you to everyone who contacted us regarding their PPP agent fees. At this time, attorneys working with ClassAction.org have decided to close their investigation into this matter. If you have questions regarding your rights, please contact an attorney in your area. The information below is for reference only. Our open list of lawsuits and investigations can be found here.
At A Glance
- This Alert Affects:
- Accountants and other loan agents who helped prepare paycheck protection program (PPP) applications and were not paid their agent fees by the bank.
- What’s Going On?
- Lawsuits have been filed against some banks alleging that they shorted accountants, consultants and others on the fees they were entitled to for preparing PPP applications. Attorneys working with ClassAction.org have now launched their own investigation into the allegations with the hopes of filing additional cases on behalf of financial professionals who were not properly paid for their work.
- How a Lawsuit Could Help
- A lawsuit could help accountants and other loan agents recover the fees they were entitled to under the Small Business Administration’s (SBA) orders.
Attorneys working with ClassAction.org would like to speak to accountants and other loan agents who did not receive the fees they were entitled to for helping prepare paycheck protection program (PPP) applications.
A number of lenders have been sued over allegations that they’re shorting certified public accountants, consultants and other financial professionals on the money they’re owed in direct violation of the Small Business Administration’s orders. Now, attorneys working with ClassAction.org are looking into the allegations with the hopes of filing additional cases on behalf of loan agents who weren’t paid for their work.
If you weren’t paid your agent fee, attorneys working with ClassAction.org want to hear about it.
Before they can even consider taking legal action, they need to speak to accountants and other loan agents to determine which banks are following the government’s orders – and which ones are not.
How Are Some Banks Denying PPP Agents Compensation?
It has been alleged that some banks are denying PPP agents compensation by:
- Refusing to pay agent fees or paying less than the required amount
- “Outright refusing” to process loan applications that mention an agent
- Referring customers to online applications that do not provide space to designate an agent
- Telling applicants that the SBA changed its guidance and that the bank is no longer paying agent fees
According to the SBA, agents who helps small businesses prepare and file PPP applicants are to be paid by the lender a fee between .25% and 1% of the loan amount. This money is to come from the lender’s own commission for processing the application – and not from the borrower or his or her proceeds.
This means that banks who refuse to pay agent fees are keeping money that they have no claim to instead of paying accountants and other loan agents who have assisted small businesses during the COVID-19 pandemic.
How a Lawsuit Could Help PPP Loan Agents
Class action lawsuits could help accountants and other loan agents recover the fees they were supposed to be paid, plus interest.
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