Class Action Lawsuit Claims Bank of America, Wells Fargo, Other Banks Refused to Pay Agents for Preparing PPP Applications
UPDATE: HGD has settled this case and is no longer taking new clients.
Attorneys from Heninger Garrison Davis, LLC’s class action group filed a class action complaint against a number of banks for failure to pay agents who assisted with the preparation and filing of Paycheck Protection Program (PPP) applications on behalf of Alliant CPA Group, LLC, individually and on behalf of a class of similarly situated businesses and individuals.
The defendants listed in the 36 page complaint include the following: Bank Of America, Corp., Bank Of America, N.A., Ameris Bank, Bank Ozk, Cadence Bancorporation, Cadence Bank, N.A., Centerstate Bank Corporation, Centerstate Bank, N.A., Newton Federal Bank, Synovus Bank, Truist Financial Corp., Truist Bank, United Community Bank, Inc., United Community Bank (Georgia), Wells Fargo And Company, And Wells Fargo Bank, N.A. (Defendants).
The class-action lawsuit alleges the defendants have overstepped Small Business Administration (SBA) mandates by refusing to pay or not paying full statutory fees to accountants, consultants, loan brokers, or other representations who helped clients file PPP loan applications.
For a free legal consultation, call us today (205) 326-3336
Contact Our Class Action Attorneys For More Information about the PPP Agent Fees Lawsuit
According to the complaint, on March 25, 2020, in response to the economic damage caused by the COVID-19 crisis, the United States Senate passed the Coronavirus Aid, Relief, and Economic Security Act, the CARES Act as a means for small businesses to receive federally backed, forgivable loans to assist with battling economic hardship caused by the COVID-19 crisis. Though backed by the SBA, the PPP was to be administered through private lenders such as the defendants, who, in return for administering a PPP loan, would receive between one- and five-percent fees depending on the size of the loan, the case explains.
The SBA Regulations include not only compensation for Lenders, but also agents including i an attorney, accountant, consultant, employee of the borrower who prepares their employer’s application, anyone who assists a lender in relation to an SBA loan, loan broker, or any other individual who represents an applicant in its business with the SBA. These agents, including plaintiffs, were to be paid for their services by the PPP lender through a portion of the funds it received from the SBA.
According to the lawsuit, despite SBA regulations, the defendants have either refused to pay PPP agents as a matter of policy or have agreed to pay only a percentage of the fees owed. Additionally, the defendants effectively denied payment of PPP Agent Fees by making it impossible to indicate that Agent Fees were due, refusing to accept relevant SBA Forms, and/or refusing to allow the applicant to indicate that a PPP Agent assisted the applicant. Attorneys for the plaintiffs in this lawsuit are asking for relief for the Plaintiffs including equitable recoverable compensatory, statutory, and other damages.
The plaintiffs are represented by Heninger Garrison Davis Partner, James McDonough in their Atlanta office.
Heninger Garrison Davis, LLC, is a national law firm and our attorneys defend valuable rights for our clients. To determine if you should file suit, consult one of our qualified lawyers as soon as possible to understand your options. We do not charge any fees upfront. In fact, we will only charge attorney’s fees if we obtain a financial settlement for you. If you do not win, we get nothing. Call us today for your free case evaluation 1.800.241.9779.