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Cut Them Off at the Past – New COVID Stimulus Package Should Foreclose Any Possibility of Plaintiff Victory in Agent Fee Class Actions | Balch & Bingham LLP

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Congress passed a new COVID-19 stimulus package containing an important amendment to the CARES Act which should foreclose any possibility the Plaintiffs in the Agent Fee class actions currently pending across the country can successfully argue banks must pay them “agent fees” for preparing PPP loan applications. The amendment establishes that, contrary to the Plaintiffs’ assertions, banks are not required to pay agent fees absent a written agreement with the agent to do so. Congress gave the amendment retroactive effect so it applies to every PPP loan made to date.

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