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ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
September 24, 2020
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The Gateway For Payroll Data
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Nearly 9M Americans in danger of missing out on $1,200 stimulus check
Up to 8.7 million individuals who are eligible to receive the economic impact payments have yet to receive the money
Millions of Americans are at risk of losing out on a coronavirus stimulus check worth up to $1,200, a government watchdog said this week.
Up to 8.7 million individuals who are eligible to receive the economic impact payments have yet to receive the money due to incomplete IRS and Treasury Department records, according to a Monday report from the Government Accountability Office, Congress' auditing arm.
It's the third report from the GAO examining the implementation of the $2.2 trillion CARES Act and other pandemic relief measures by Congress and the Trump administration earlier this year.
Read more at FOX BUSINESS
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Unemployment gap widens as overall rate falls
Split between employment levels for Black workers and White workers is expanding
While the U.S. economy shows signs of recovery following devastation wrought by the coronavirus pandemic, improvements do not appear to be equal across all demographics.
The overall U.S. unemployment rate fell by 1.8 percentage points to 8.4% in August as the U.S. economy added 1.4 million jobs. The number of unemployed individuals fell by 2.8 million to 13.6 million.
But the unemployment rate has fallen faster for White workers than Black workers, leaving a widening gap.
According to data from the Federal Reserve Bank of St. Louis, the unemployment rate for white workers in August was 7.3% -- lower than the national average - while the rate for black workers was 13%. Read more at FOX BUSINESS
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Paving the Payments Future
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Online used-car retailer Carvana sees record third quarter as vehicle demand rebounds
Rebound in sales has seen major automakers scramble to ramp up production
Online used-car retailer Carvana Co CVNA.N said bit.ly/32SOqyh on Tuesday it expects record revenue and retail sales in the third quarter due to a strong rebound in demand for vehicles in the United States, following easing of lockdown restrictions.
Shares of the company, which have nearly doubled in value this year, rose 20% in premarket trading, and were set to open at more than six week high.
"The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana," Chief Executive Officer Ernie Garcia said.
Read more at FOX BUSINESS
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Spread the word: Americans who don't earn enough to have a tax filing requirement should sign up online with #IRS for an Economic Impact Payment by Oct. 15: www.irs.gov/nonfilereip #EIPbyOct15 Many people who are not required to file tax returns may still be eligible for Economic Impact Payments. Help us spread the word so they register with #IRS for a payment by Oct 15: www.irs.gov/nonfilereip #EIPbyOct15
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Coronavirus pandemic has destroyed 1.4M franchise jobs, causing 'lasting' damage: industry group
Before the coronavirus pandemic, franchises employed roughly 8 million Americans
The coronavirus pandemic wiped out an estimated 1.4 million franchise jobs through the end of August, causing "lasting perennial damage" to the sector in the U.S., according to the International Franchise Association.
Nearly 60% of the job losses were classified as temporary, although recent data shows many U.S. employers who thought they'd be able to rehire furloughed workers are now saying they cannot.
"This report shows that COVID-19 has caused a staggering amount of business closures and layoffs across franchise businesses," Robert Cresanti, International Franchise Association president and CEO, said in a statement. "These are locally owned, community businesses like exercise studios, dry cleaners, restaurants, and bars. Additional broad-based and long-term Congressional action is desperately needed to stave off additional closures and layoffs, particularly for the hardest-hit businesses." Read more at FOX BUSINESS
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Pittsburgh becomes a battleground for national banking powerhouses
While JPMorgan and Bank of America expand their footprint into PNC's backyard, smaller banks say they maintain a customer relationship advantage.
Community banks in Pittsburgh already had to deal with hometown heavyweight PNC. Now two more banking behemoths have entered the crowded retail market.
Bank of America, the second-largest bank in the U.S. by assets, broached the Steel City in September 2018. By June 30, 2020, the Charlotte, North Carolina-based bank had climbed to No. 16 in deposit market share in the Pittsburgh metropolitan statistical area, according to the Federal Deposit Insurance Corp. (FDIC).
The nation's largest bank, JPMorgan Chase, opened its first Pittsburgh branch last October and recently cut the ribbon on its fourth branch in the city. More offices are on the drawing board.
Read more at BANKING DIVE
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The COVID-19 lockdown is squeezing real estate from all sides and threatens to burst the housing and mortgage bubble
Sooner or later, homeowners in this frothy U.S. housing market must pay the piper
Recently the Federal Housing Finance Administration (FHFA) - conservator of Fannie Mae and Freddie Mac - extended the moratorium for both evictions and foreclosures until the end of the year. Many homeowners breathed a sigh of relief.
Indeed, over the past few months the number of borrowers with active forbearances has declined. But that's no reason for optimism. The more serious matter is how many homeowners are now delinquent. By the end of 2020, several million borrowers who have received mortgage forbearance will have gone nine months without making a mortgage payment.
Read more at MARKET WATCH
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Home sales reach a 14-year high in August, with prices hitting a new record
Home sales surged to a 14-year high in August as record low interest rates brought homebuyers out in droves and pushed prices to a new record high.
Existing home sales -- which includes sales of single-family homes, townhomes, condominiums and co-ops -- were up 2.4% in August from July, to a seasonally-adjusted annual rate of 6 million transactions, according to the National Association of Realtors. That was a 10.5% increase from the year before and the highest level since December 2006.
The median price for all housing types was $310,600 in August, up 11.4% from a year ago when the median price was $278,800. This marks 102 straight months of year-over-year gains. Prices rose in every region across the country.
Read more at CNN BUSINESS
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Americans are hoarding trillions of dollars in cash before the presidential election: Morgan Stanley
American households are socking away large sums of cash amid economic uncertainties later this year such as a new wave of COVID-19 and the post presidential election aftermath.
U.S. consumers built up an astounding $12.5 trillion in excess of savings from April through July, according to new research by Morgan Stanley economist Ellen Zentner. This equates to 13.5 months of the $600 a week supplemental unemployment insurance benefit that lapsed on July 31, Zentner estimates.
Cash hoards have been built across the income spectrum, says Zentner. That ultimately runs counter to cash being saved by wealthier households during tough economic times while lower income households are forced to spend more aggressively due to job loss, etc.
Read more at YAHOO FINANCE
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U.S. debt jumps by record amount in second quarter led by federal government, Fed data show
The numbers: The debt burden on the U.S. economy increased at a record pace in the second quarter led by government borrowing needed to cushion the blow of the coronavirus pandemic, according to a report from the Federal Reserve released Monday.
Total domestic nonfinancial debt rose at a record seasonally adjusted annual rate of 25.3% in the April-June quarter to $59.3 trillion. That's above the prior record of 19.25% during 1985.
What happened: Federal government debt increased a record 58.9% in the second quarter to $22.58 trillion, up from a 11.4% gain in the first quarter. Congress has approved $2.89 trillion in coronavirus relief spending this year.
Read more at MARKETWATCH
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Don't restrict payday loans people need to survive pandemic
The COVID-19 pandemic has created unprecedented hardship for millions of families in all corners of our country. More than 16 million people were unemployed in July, countless businesses are either prohibited from operating or significantly limited in their operations due to state- and city-wide lockdown orders, and a third of people have reported a loss of income. Not only is the pandemic a public health emergency, but combined with its financial impacts it is a recipe for catastrophe.
Despite these problems facing everyday people, negotiations between the House and the president surrounding another relief package remain at a standstill. So with prospects of Washington delivering another round of stimulus checks or enhanced unemployment slim many people, particularly those with lower-incomes, are understandably concerned about being able to make ends meet.
In addition to rising concerns about paying their bills, worries about being able to access credit have also become a top-of-mind issue. And these Americans have a reason to be concerned. Consider this: Lenders have clamped down on consumer lending and banks are lowering credit limits and insisting on higher credit scores for loans they do make.
Read more at the DETROIT NEWS
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What are check-cashing services?
Getting paid is always worth celebrating, but where do you go to turn that celebration into actual cash? For around 6 percent of adults in the U.S., the answer is not a bank or a credit union. This small portion of the population is often known as the unbanked, which means they do not have a traditional checking or savings account. Instead, they have to explore other ways to cash their checks and turn written amounts into real dollars.
What is a check-cashing service?
While you may not be familiar with a check-cashing service, you've likely passed by one of these places that will happily handle your check needs. They often have signs that advertise their check-cashing ability, along with payday loans, wire transfers, money orders and other financial transactions. According to the trade association that represents many of these places, Financial Service Centers of America (FISCA), there are more than 13,000 locations across the country. A lot of people put a lot of money through them, too. FISCA's data indicates that they serve more than 30 million customers each year and cash more than $58 billion of checks.
Read more at BANKRATE
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ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
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Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092
[email protected]
www.afspassociation.com
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