9 December 2024

KServicing Responds to House Subcommittee’s PPP Loan Inquiry

By Ronald Smith

So, KServicing has something to say to those folks accusing them of helping out with fraudulent PPP loans. They’re not too happy about it!

Apparently, KServicing, along with other fintech companies, got accused of tricking the government and taking a bunch of money. But hold on a sec, KServicing has a different story to tell.

In a statement, KServicing says, You know what? That report is totally missing the point. They’re taking things out of context just to prove their own viewpoint. Back in the crazy time of the COVID-19 pandemic, we fintech people actually played a crucial role in supporting small businesses in the US. And we’re really proud to have been a part of that.

KServicing Fires Back at House Subcommittee over PPP Loan Inquiry

I’m here to tell you some important news. The report I’m reading states that fintech companies have been accused of not doing enough to stop fraud with the Paycheck Protection Program (PPP). And because of this, we, the taxpayers, are losing money that we shouldn’t have to.

What does this mean? Well, these fintech companies seem to be operating outside the usual rules that traditional banks have to follow. They’re not being watched closely by lenders or regulators, which is a big problem. It’s been alleged that they’ve taken billions of dollars in fees from us, the taxpayers, while also making it easier for fraudsters to take advantage of the PPP loan program.

One specific company, called KServicing (formerly known as Kabbage), has been accused of approving PPP loans without paying attention to their employees’ concerns or to clear signs that these loans were likely fraudulent. This is a serious accusation.

So, what does all of this mean for us?

I want to talk about something that’s been bothering me lately. It seems like there’s been a lot of shady stuff going on with this program that’s supposed to help small businesses. According to a report from the sub-committee, there was a lot of fraud happening, and the people in charge of preventing it weren’t doing their job!

And if that wasn’t enough, Kabbage, the company that oversees these loans, has had its own share of problems. They recently filed for bankruptcy, and now the U.S. Department of Justice is investigating them for their loan approval practices.

It’s really disheartening to see something that’s supposed to be helping small businesses being taken advantage of. We need to hold these companies accountable and make sure they’re doing their part to help, not hurt.

That’s all for now. Thanks for listening.

I want to talk to you about something really important. The Select Subcommittee has been doing a great job reviewing government programs related to COVID-19 and making sure they’re protecting the American people during this terrible pandemic. I worked closely with the Subcommittee to give them all the information they needed. But I have to say, the report they put together doesn’t do justice to the American people. They took bits of information out of context to come to a conclusion they had already made up their minds about. It’s not fair to the American people. When I look back on the chaos of the COVID-19 pandemic, I can’t help but think about how much the fintech community helped small businesses in the US. I’m proud that we were a part of that effort.