T. Gschwender & Associates, Inc. has been named a Preferred Service Provider by Independent Bankers Associates of New York State. TGA has been providing loan review services to IBANYS member banks for nearly 30 years.

The company was established in 1984 by Thomas H. Gschwender and purchased by Bharpur "Bo" Singh, former OCC Examiner and Regional President of Adirondack Bank, in 2008. Since the transfer in ownership, TGA has grown over 300% and now has clients in six different states. "Our current clients include large regional community banks with assets well over $5 billion to small community banks with assets less than $100 million," states Singh. "Our growth is attributable to not only our risk based proprietary loan review system and approach, but the expansion our services  as well. We are in all essence a highly sophisticated Credit Department, able to handle everything from underwriting, portfolio management, to problem loan management. This allows our clients to tap into our resources where they need us...without having to hire additional personnel," explains Singh.

TGA consultants  have grown from 5 to over 20 during the same period. "Finding the right people is the key to success. We continue to focus on recruiting retired bankers that have extensive experience to be our primary consultants. This not only allows them to supplement their retirement income, but also to stay involved in banking on a part time basis," says Singh. TGA executive team includes two former bank President/CEOs as well as a senior manager from the OCC. With expertise spanning "both sides of the street", the company's associates provide a well-balanced and thorough approach to services to banks.

"Our future looks very bright. We will be launching our e-Credit File System soon which will allow our clients to digitize their hard copy loan/credit files. Our system looks and feels like a hard copy credit file (with different tabs or sections) and will allow for easy storage and retrieval of documents, as well as has help clients manage documents that are required on periodic basis by having a built in tickler system. It will also be accessible on iPads/tablets as well as smart phones. This way the Relationship Managers can access the credit file while on calls with customers, if need be," Singh explains. Along with their web-based Loan Review System that banks can use to conduct their annual reviews, the e-Credit File System will be marketed nationally to over 20,000 financial institutions. Singh indicates that, "This will jump start TGA in being recognized more as a national player rather than a regional consulting firm."

"We are grateful for the Preferred Service Provider designation from IBANYS and we look forward to continuing to service their member banks for many years to come," says Singh. "We believe this relationship will be beneficial for everyone involved."

By Carter Dougherty, Bloomberg, May 23, 2012

The Consumer Financial Protection Bureau is seeking comment on what should be included in a forthcoming regulation on prepaid debit cards.

"Right now, prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards," the bureau's director, Richard Cordray, said in an e-mailed statement.

Rules on prepaid cards could squeeze the revenue that companies such as Wal-Mart Stores Inc., Green Dot Corp. and NetSpend Holdings Inc. collect on prepaid cards. Mercator Advisory Group, a Maynard, Massachusetts-based consulting firm, says that the amount loaded on prepaid cards in the U.S. is growing by 42 percent per year and will hit $167 billion in 2014, according to the bureau.

The agency is requesting public comment on the new rule by July 22. The regulation will cover so-called general purpose reloadable cards, prepaid cards that can be restocked with cash once the initial amount is drawn down.

The consumer bureau plans to propose a draft regulation by early 2013, according to a person with direct knowledge of its plans.

The bureau held a field hearing on its plans for prepaid cards in Durham, North Carolina. The hearing included representatives of the prepaid card industry and consumer advocates.

In a statement prepared for the hearing, Cordray stressed that the focus will be on "safety and transparency" in the prepaid card market.

 "We believe that innovation can bring great benefits to consumers and can provide those outside the traditional banking system with more access to financial products that meet their needs," Cordray said in the prepared statement. "But we have a duty to make sure these products are safe for consumers and that prepaid card issuers do not make money by relying on tricks or traps."

Prepaid cards do not have the same protections as credit cards if they're lost or stolen, the money they hold is not always insured by the Federal Deposit Insurance Corp., and only sometimes are fees for checking balances or adding value disclosed on the cards' packaging, according to Cordray's statement.

On some cards, he said in the statement, "the fees, terms and conditions that apply to the card are printed on an inner flap or in a magnificent origami pamphlet located inside the package."   

To learn more, click here: http://www.consumerfinance.gov/blog/live-from-durham-nc/