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Home›Capital›Rakoff bans banks from paying agent fees in PPP lawsuits

Rakoff bans banks from paying agent fees in PPP lawsuits

By Macie Vincent
March 22, 2021
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A federal judge in Manhattan has ruled that banks are not required to pay agent fees to accountants who help borrowers apply for loans under the federal paycheck protection program.

The decision, U.S. District Judge Jed S. Rakoff of the Southern District of New York, dismissed six proposed class actions that claimed the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, made payments mandatory, whether officers had or no agreements with banks.



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