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Kabbage PPP loans lawsuit overview:
- Who: LaDonna Wiggins filed a lawsuit against American Express Kabbage Inc.
- Why: Wiggins claims Kabbage gave her false information during the PPP loan application process, damaging her business brand and personal reputation.
- Where: The complaint was filed in Texas federal court.
Kabbage Inc. and its affiliates gave misleading and false information to an individual applying for a Paycheck Protection Program (PPP) loan as part of the Coronavirus Cares Act, a new lawsuit alleges.
Plaintiff LaDonna Wiggins claims Kabbage and its affiliates “grossly misrepresented” the calculation of the PPP loan, the context of the fund use and the documents required.
Wiggins argues Kabbage’s alleged misconduct damaged her business brand and personal reputation. She also alleges “serious criminal allegations that directly resulted from the financial advice provided by Kabbage and its representatives.”
“Kabbage and its affiliates were grossly negligent in the PPP approval process because they provided false/misleading information during the application process,” the Kabbage lawsuit states.
Wiggins argues a Kabbage representative gave her incorrect information about how she needed to calculate payroll data after she contacted the company to inquire about her PPP loan eligibility.
Further, Wiggins claims Kabbage “intentionally processed loans they guaranteed would be approved without auditing the documents” and displayed “financial misconduct” by notifying her that any of the funds not approved for forgiveness through the PPP loan process would be “treated as a regular business loan with a 1% interest.”
Kabbage lawsuit claims company profited approximately $340 million through loan origination fees
Kabbage and its affiliates profited approximately $340 million through loan origination fees, according to the Kabbage lawsuit, which argues this made it an attractive target for acquisition. American Express acquired it for $850 million on or around August 2020.
A Congressional Select Subcommittee is investigating Kabbage for its PPP fraud involvement, according to the lawsuit.
Wiggins requests a total award of around $260 million in damages for loss of contracts and future income, reduced quality of life and punitive damages.
Last October, consumers hit Prestamos with a lawsuit over allegations the lender pocketed the government fees for PPP loan applications, while failing to fund the applicants as promised.
Did you apply to take out a PPP loan during the COVID-19 pandemic? Let us know in the comments.
The Kabbage lawsuit is Wiggins, et al. v. American Express Kabbage Inc., et al., Case No. 4:22-cv-03302, in the U.S. District Court for the Southern District of Texas.
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23 thoughts onKabbage lawsuit claims company provides false, misleading PPP loan information
I have a loan through Kabbage and it has not been forgiven. They are trying to damage my name. Please help.
I was told over and over and over again that my PPP loan would be forgiven – Every time I spoke with my K servicing lender, I was told my loan is in the forgiveness stage and it will only be a little while longer. I kept sending the all the information they requested several times. I could write pages and pages of all the false information that was provided to be even in emails not just be telephone. It was ridiculous the lies they kept telling me – I am in the appeal process now with the SBA providing all the information again.
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I applied and received relatively small PPP loan from Kabbage in 2020. We timely submitted all forgiveness docs and they confirmed receipt. Beginning apprx 8/2022 they started billing. No one at Kabbage could/would give a straight answer about the forgiveness status and that has continued through 2/2023. At one point they blamed SBA. I did reach out to SBA. They were very nice. They told me that there was no record of me having a PPP loan and that Kabbage must have made an error in the beginning, but that there is nothing SBA can do. And of course Kabbage was telling me to make payments on the loan that would be returned to me when the forgiveness goes through, though doesn’t sound like that will ever happen.
I filed for the loan forgiveness back in August of 2021. I have submitted my bank statements upon their request over 6 times. I have made 38 calls to Kabbage over the last 2 years. I know my loan is forgiveable as I was a small business owner and I used all funds according to guidelines. My business has closed and I’m still receiving the run around from kabbage. Please sign me up. It has been very stressful dealing with kabbage.
K sevicing has been harassing me for documents and info I have supplied Kabbage with years ago. I told them i didn’t have a loan through them, I had it through Kabbage. I want them to send me the original loan signed by me via Certified Mail because I think they are a scam. They have no right to my ID, my bank information, my tax records – all information I have already suypplied Kabbage. I’m just a little business and my loan was for just a little over $6K and it was legit losses due to Covid. Why is it Congressmen got millions in forgiven loans, but as a small business I’m getting screwed?
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I was initially approved for the loan forgiveness. Then kabbage or Kservicing contacted stating I had re apply due to sba changing their portal. They then alleged I had three ppp loans for the first draw which was proven to be false by myself and verified by the sba. Then kabbage requested multiple documents which the sba notified me that that is false information and I do not need to supply that to kabbage. I’m trying to join the lawsuit for several reasons as well as file against sba because they are fully aware of the outrageous practices of these lenders, and the misappropriation of the funds that should have been given to the business owners. I appealed with the sba and due to kabbage notifying John powers instead of me with a fake date I was late. And had my appeal tossed, re appealed the appeal just for the sba to say I didn’t provide information which I did in their portal and took screen shots and they turned around and dismissed my appeal. Sign me up
I was told my reps to disregard emails and my loan will be forgiven for 2 years and they said not worry about it they will file appeal with sba and the program didn’t open yet. I reached out to them for 2 yrs now they want more interest when it was 1 % they are not helping me
My problem with kabbage began when they sent a docusign form to fill out with the wrong loan amount. It was $7000 under the actual amount they said I was qualified for. I let them know, I was told they created a “ticket” to correct their mistake and they called back and told me that’s ok and to fill it out. As I asked questions the representative just giggled. Then i was forgiven for just the wrong amount they put in the forgiveness form which they submitted to SBA with wrong amount. They tried telling me since i signed it “that’s too bad”. I told them since they insisted on submitting an incorrect loan amount “that’s too bad”. They sent a demand for payment and the collection department is supposedly working on it but I’m sure they’re aware it’s not collectable due to all their errors and unprofessionalism in the process made over 20 calls over 2 years
I received a PPP loan through Kabbage and applied for forgiveness. I have sent the same documents at least 5 times and have not received a decision. I sent in my application on 8/16/21.
I received loan through Kabbage and hasn’t been forgiven.
My loan through Kabbage has not been foregiven either, although they sent me an email that it had been foregiven on May of 2022. My loan amount was relatively small, I am a Schedule C Contractor, so it would seem like a no-brainer. I contacted K-Servicing, they said to give them 3 months to look into it. I contacted the bank, Customers Bank and they said they had nothing to do with it. I wrote to the SBA, nothing. I was never told why my small loan was not forgiven leading to me believe that it was not ever done