Calif. Federal Judge Dismisses CARES Act Agent Fee Class Action

LOS ANGELES — A California federal judge has dismissed a proposed class action accusing two banks of reneging on their promise to pay fees to agents who aided small businesses in applying for loans under the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP).

In a Jan. 6 order, Judge James V. Selna of the U.S. District Court for the Central District of California agreed with defendants JP Morgan and First Republic Bank that the CARES Act does not provide a private cause of action to recover agent fees absent an agreement between agent and lender.

“Neither …