Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Prestamos PPP Loans Class Action Lawsuit Overview:
- Why: Plaintiffs accuse Prestamos of pocketing government fees for PPP loan applications, but never funding the applicants.
- Who: Small business owners sued Prestamos, a lending company.
- Where: The class action lawsuit was lodged in Pennsylvania federal court
Three small business owners lodged a class action complaint against the lender Prestamos for exploiting the Paycheck Protection Program (PPP) for its own gain by collecting fees but failing to pay out loans as promised.
The lead plaintiffs are Alicia Marshall, Daniel Pronsky, and Paris Townsend all of whom lost significant income due to the coronavirus pandemic, subsequently applied and were approved for a PPP loan with Prestamos in early 2021, but say they never received their funds.
The class action lawsuit argues that Prestamos’s failure to fund these Small Business Association-approved PPP loans directly harmed Marshall’s in-home healthcare business, Pronsky’s barbeque catering business, and Townsend’s hair care products business.
Marshall, Pronsky, and Townsend seek to represent a national Class of persons and entities in the US who, in 2021, timely applied for PPP loans with Prestamos, but did not receive loan proceeds despite approval, as well as a similar California subclass.
Prestamos Fails to Pay Up on PPP Loans
Marshall, Pronsky, and Townsend each received Small Business Association (SBA) approval on their PPP loan applications and a promissory note regarding the loans.
Despite properly completing, signing, and submitting the required loan documents and multiple attempts to obtain the loan proceeds, they never received their loan funds, says the class action lawsuit.
Marshall even checked with her local SBA office about the loan; the SBA had information of her loan, its approval, and alleged disbursement, although she still hadn’t received the money.
Many other borrowers have complained about not receiving their due funds from Prestamos on the Better Business Bureau’s website and various social media sites.
Under PPP loan provisions, Prestamos should have funded these loans within 10 days of SBA approval. Unfortunately, despite its designation as a Community Development Financial Institution (CDFI), which indicates its dedication to “helping economic growth in underserved areas,” Prestamos failed to follow through on many small business loans it processed.
Prestamos Allegedly Used PPP Loans to Make Itself Money Instead
As an authorized PPP lender, Prestamos was entitled to receive fees from the SBA for each PPP loan it processed. In 2020, Prestamos processed nearly 1,000 PPP loans, reportedly receiving $1.3 million in fees from the SBA, according to court documents.
In 2021, after the SBA increased its fee rates, Prestamos processed nearly 500,000 PPP loans through May 31, 2021. So far, this outstrips all other lenders in 2021, and is more than the total number of PPP loans made by Bank of America, PNC Bank, TD Bank, and Wells Fargo combined, according to the complaint.
Thanks to that substantial amount, Prestamos has reportedly received nearly $1.2 billion in fees in 2021.
The plaintiffs seek compensatory, consequential, and other damages; prejudgment interest; restitution and all other forms of equitable monetary relief including all PPP loan proceeds owed; disgorgement of all fees Prestamos obtained; punitive damages; and reasonable court costs.
Did you apply for a PPP loan from Prestamos or another lender but never received your money? Let us know in the comments section below!
The plaintiffs are represented by Lawrence J. Lederer, Michael L. Murphy, and Patricia M. Kipnis of Bailey & Glasser LLP and Justin A. Heller and Matthew M. Zapala of Nolan Heller Kauffman LLP.
The Prestamos PPP Loans Class Action Lawsuit is Marshall, et al. v. Prestamos CDFI, LLC, Case No. 2:21-cv-04337, in the U.S. District Court for the Eastern District of Pennsylvania
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Lender Think Finance Cheats Virginia Consumers Out of $68 Million in Interest, Says Class Action Lawsuit
- University of Phoenix Settlement: Deceptive Advertising for Graduate Employment
- Equifax Credit Scores Reported ‘Bogus’ Debts, Says Class Action
- PNC Bank Mortgage Holders Overcharged After Enrolling in Deferral Program During Pandemic, Says Class Action
129 thoughts onPPP Loans Exploited by ‘Community Development’ Lender Prestamos, Lining Pockets With $1.2B
I filed a complaint back in April when I signed paper work for funding they sent to my account but then withdrew it some how saying payment ledger and I was told they would send me a prepaid card and it never came and when I tried to speak to some one they wanted my tax return again and then told me I wasn’t approved but it says I received it and I looked at my paper work and it has another receiptiant named Jose martinez and I have absolutely no idea who that is I tried to get help from the SBA they told me that I hade to get ahold of the lender and that is impossible
I was approved and given an SBA number on May 20th 2021. My bank rejected my funds on June 3rd 2021. On August 30th I opted for the dash prepaid card and I’m still waiting. I have filed several tickets with blue acorn I have contacted the SBA twice and they have noted and it escalated my account. And here it is now November 12th and I am still waiting I just keep getting told to be patient.
I was approved and received a SBA loan number may 31st 2021 but never recieved a dime. After months of trying to get my money they randomly sent me an ensul stating I was now denied and stated nothing else, even though I was already approved and funds had already been sent but supposedly my bank sent them back and all I needed to do was update new banking info but this took them 2 months but instead of resending to my new bank info they said I was denied but to this day I still have an SBA approved loan number and SBA still shows my loan was disbursed to me yet I havent seen a dime. Nobody will get back to me from either blue acorn, Prestamos or SBA yet I get continuous emails about being approved for loan forgiveness on a loan I never got. This is ridiculous. Someone help!
Oh and up to date now. Prestamos approved my loan forgiveness and SBA processed it and paid them for a loan I NEVER RECEIVED! I contacted them and told them if I was denied after being given an SBA loan number and money being sent to me then returned to lender then why did the lender approve my forgiveness for a loan they never paid me and then the SBA approved it and sent the lender the money for my loan that I NEVER RECIEVED?!?! This is absolutely insane! Idk what to do now. I’ve been approved and forgiven for a loan i haven’t seen a dime of ??!?
Yes. Same scenario here, but with different lender. Called SBA who said I was fine and should have gotten the disbursement. Even set up in SBA system
Yes I’ll was approve thru blue acorns was suppose to be funded by prestamos they told me to reverify I did. Then they just put me on hold could reach any one. Just email …told me. Their working hard to. Get me my funds and that the loan were sent back ! my bank has no log of that actually happening. Then they. Basically blocked me from the site all SBA sites and. Or .gov sites say funded. I applied for forgiveness I was approved. How is that possible That means the funds were supplied and I never got anything. And I emails saying all of this. And me looking for the location of the loan. Which in long. Drawn out. Ordeal they then stated that they. We’re now denying such loan. For technical reasons or something yet u approved forgiveness I want answers
My experience was almost identical to yours. The livelihood of my business was balancing in the hands of BlueAcorn and Prestamos. Between BlueAcorn and the automated responses to the “tickets” made and Prestamos and their phone tag, I wasted valuable time. Time that I cannot reverse. Time that I should have been able to seek financial help elsewhere. Shame on you Prestamos for victimizing the community that you claim to support. Your business has probably been the downfall of countless other small businesses that fell victim to your service. I hope you can sleep at night knowing the damage you caused us all. Worst yet, you were a trusted finance company that didn’t come with a fraud warning label!!
I never received my funds either and am now getting emails about forgiveness on a loan I never received and I’m in Arizona what do i do?
I never received my funds either and now I’m getting emails from the SBA to submit for forgiveness on a loan I never received.
i was approved also for PPP and Prestomos says they issued my check recieved 6/1/2021 and i still havent gotten the money.Please add me to list
I was also short changed out of my loan which was approved by the SBA. Signed on May 27th and still no funds
What firm do we contact
Approved, funds disbursed, prestamos and blueacorn said they weren’t able to approve me, federalpaygo site shows this ppp loans been disbursed to me but haven’t received anything and the only thing that was on my mind was how shi**y it’d be to not only never receive the funds but to have to pay it back as well along with interest so I did how I felt best after Prestamos underwriter said I have a an email confirming I don’t have responsibility for the funds and went ahead and applied for the forgiveness … prestamos accepted it and sent it off to the sba which was fully remitted by the sba. Can’t apply for forgiveness unless u were approved and funds were disbursed.. I’ve tried speaking with blueacorn and Prestamos several times stating I have all the documentation needed for this from the beginning to the promissory note to “disbursement and forgiveness” they haven’t replied back anything but forward what I’ve sent them back to me. Literally took out a loan from some close friends and family in the amount of the ppp loan to cover payroll and expenses and still haven’t received anything yet when I was suppose to have it in May 2021.