Tag: collection

CFPB’s Small-Business Lending Data Collection Rule Draws Community Bank Criticism

September 16, 2020 at 3:45 pm ET

The way in which many small banks could be required to report small-business loan data on minority- and women-owned businesses is emerging as a contentious issue for the Consumer Financial Protection Bureau, which on Tuesday unveiled its long-awaited outline of how it plans to implement a key part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The CFPB has for years delayed a rulemaking on part of Dodd-Frank that requires collecting data on small-business lending to determine if minority- and women-owned small businesses are equally able to access funding, similar to how banks and mortgage lenders report data under the Home Mortgage Disclosure Act.

Consumer advocates have pushed the CFPB to collect this data and implement the rule, an issue they say is increasingly important as questions linger over the fairness of the Paycheck Protection Program and other small-business relief efforts

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CFPB data collection rule could exempt smallest small-business lenders

The Consumer Financial Protection Bureau finally detailed what small-business lending data it may require under the Dodd-Frank Act, but the agency also appears willing to relieve certain lenders from the reporting requirements.

The CFPB said in a 79-page outline released Tuesday that it is considering whether to exempt lenders with under $100 million or $200 million of assets out of concern that some entities “might reduce or cease their small business lending activity because of the fixed costs of” compliance. To implement Section 1071 of Dodd-Frank, the agency is also considering exempting institutions that make few small-business loans.

The data requirements — similar to reporting obligations applicable to mortgage lenders — are designed to assess small businesses’ credit needs and whether borrowers experience lending discrimination.

Banks have largely resisted collecting data on women-and minority-owned small businesses by claiming it requires too much paperwork and is a regulatory burden. But experts

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Scrap tax collection at source proposal on overseas remittances

Being a Finance Minister during a pandemic is undoubtedly an unenviable job. Relief steps announced by the Government must be funded, tax revenues need to keep coming in, and new tax measures should be introduced only if they do not shrink taxpayers’ bank balances further. Some tax proposals are deferred, some amended but usually no proposal is trashed.

In order to widen and deepen the tax net, Budget 2020 proposed to amend Section 206 C to levy a tax collection at source (TCS) on overseas remittance and for sale of overseas tour package. An authorised dealer receiving an amount or an aggregate amount of ₹7 lakh or more in a financial year for remittance out of India under the Liberalised Remittance Scheme (LRS) of the RBI, shall be liable to collect TCS at the rate of 5 per cent if the sum received is in excess of the said amount

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