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Long story short, a shady funder in NYC backdoored our deal and gave the merchant the typical bait and switch (take this MCA and we'll give you a 3% 10 year loan after).
Commission was stolen, among other things that'll have legal repercussions. We've retained counsel already, but wondering if anyone had recommendations for cases like this.
Requires litigation with a lawyer familiar with the space. Sending you a DM. He won't be available due to the holiday so much, that's the only drawback, but that's typical for this space for now.
A Shady Funder? Nooooooooooooooo .......in the Merchant Cash Business ? naw......are you sure - because Pope John
Paul just blessed this industry - God Bless the well-tuned human beings in the Merchant Cash.....LOL
You don't want to be backdoored become a Priest LOL (I hear they like children though) ok maybe not a Priest cause they back door too (if you get my drift) maybe a Librarian (the industry hasn't bastardized Librarians yet because there isn't any money in it- that would be pretty safe for you my young friend LOL
- the MCA industry will back door your Mother - get over it.
Caveat Emptor - find a new line of work
Your funny :)
before you waste any money, read your iso agreement fully.One funder told me only 1 in 10 iso even ask to get the counter signed. I know some agreements have clauses that you need to submit/fund a new deal every x amount of days so if you didnt at any point from when you both signed ,you are not even an iso of theirs. Next if the iso agreement is solid , you need to make sure your proof is solid and that is was not a shopper that they can easily say they got it from someone else.Quote:
Originally Posted by loan
Best of luck and Please update us what happens as i have been in this industry since 07 and do not know of one case of an iso actually winning in court vs a funder
Lol, you guys are funny. Definitely wish this industry had some barriers to entry. Just because a contract has a certain clause, doesn't make it enforceable if it is unfairly one-sided.
And to the other cynical moron that can't use spellcheck, perhaps you don't do enough volume or large deal sizes to have to interact with lawyers, or have the knowledge to know when you can file for damages.
Anyway, I appreciate the 1 person that DM'd a credible reccomendation.
IMO - Ask yourself a few questions:
How much commission are you fighting over?
What will it cost you in legal fees (you indicated you already retained counsel)
How much time, aggravation, stress will you put yourself under?
No one every wants to be in your position - BUT, sometimes it is best to live & learn and do get
caught again - which in this business not an easy task.
So...Living this way assholes can coast through life ****ing people and never get held accountable for anything....Quote:
Originally Posted by Yankeeman07
This is just annoying.
Do not disagree with you - just how much aggravation & stress are you willing to go thru.Quote:
Originally Posted by ryan $
I would suspect 95% of us that have been in sales any length of time have war stories of not being paid
compensation. I had a business owner tell me when I went to work for him "You can always trust me, I'm a Christian"
That so-called trust cost me over $10K in unpaid commissions - Live & learn and life moves on.
half the world has learned not to trust the I'm a Christian you can trust me, when someone says that just run. it's a strong sign they use religion not morals to decide what is right and wrong.Quote:
Originally Posted by Yankeeman07
If you have retained Counsel - why ask legal opinions on a troll infested forum?Quote:
Originally Posted by loan
Best point you make here is about getting ISO agreements back countersigned. I would bet it is less than 1 in 10, meaning the vast majority of ISO's have no protections from getting screwed over. Do not submit deals to funders until you have a fully executed and valid iso agreement signedQuote:
Originally Posted by Michael I
The lack of legal knowledge here is overwhelming, but not surprising...seeing as how even someone without a high school degree can work at a sleazy firm and dial UCCs/backdoor. But a counter-signed agreement doesn't have a huge bearing on legal protection...but thanks for trying to provide legal advice (although wrong).Quote:
Originally Posted by J.Celifarco
Having a countersigned agreement doesn't matter? I dont claim to be a legal expert but I believe that if my copy only has my signature then the Funder has to hold me to my covenants but in turn can do anything they want because I have none of the protections afforded me in the iso agreement. I could be wrong but I really don't think I am.Quote:
Originally Posted by loan
omg cruisinman i almost forgot about you, how have you been baby boiQuote:
Originally Posted by cruisinman
You are wrong, but at least you have the ability to acknowledge it.Quote:
Originally Posted by J.Celifarco
This does not seem right. I have never operated on an agreement that is not countersigned but I can't imagine that this can be a legal strategy. You could literally promise anything in a contract & then not sign your end. I don't see that happening. When a MCA contract is signed, it is rarely countersigned & sent back to the merchant. If there is a legal issue, then the funder is going to sign it & then submit it to the lawyer. I really doubt that funders are submitting future purchase agreements, without them signing them, to the courts.
When you control the money (Funder & Commission), you control the conversation. If there is not a countersigned agreement, then what governs the relationship? Nothing. Who benefits from this? The one that controls the money.
Nice story there buddy. But you're forgetting one thing - there are state laws that govern commercial transaction. A funder can write whatever the f*** they want (and most high-risk funders just copy off of others), but if it violates the law, there is a case. For example, if you agree to mow someone's lawn and get paid, and they don't pay you (and no contract was signed), does that mean you can't sue them? Hell no. You can.Quote:
Originally Posted by mistamca
The legal system is complex, and I shouldn't have expected MCA brokers/funders that can barely string a coherent sentence together or construct a logical argument with ffacts to actually provide useful advice. But anyway, some people just accept backdooring.
And regarding the "stress and aggravation", there shouldn't be any. If this stresses you out the MCA industry is not for you. Anyway, glad this at least sparked a conversation to make people think.
loan,
please share the case number so we can follow how this goes and learn better how the legal system works in regard to our industry
All good . . .Quote:
Originally Posted by Bcooper
how is the mlm going hunny bunchesQuote:
Originally Posted by cruisinman
Going to launch in 2Q22 with a model that is simpler . . .Quote:
Originally Posted by Bcooper
so you are just going to have brokers and have them bring you deals and broker them like a normal iso office?Quote:
Originally Posted by cruisinman
Quote:
Originally Posted by cruisinman
Kinda.Quote:
Originally Posted by Bcooper
Going to have virtual "offices" in various Cities / States that will have Brokers. If you refer a Broker, you will earn a bonus on their production. Just the 2 levels and a Nationwide Profit Pool where Brokers earn a % based on their "total" Team's production.
We will use a Call Center to create appointments. Brokers will purchase the appointments -or- operate at a reduced commission.
Quote:
Originally Posted by loan
So just to dig a little bit (Lord knows I dig enough with this community service beach work), if I mow your lawn and you don’t pay me, and no one saw me mow the lawn, and you say we had no agreement and you never told me to mow, and there’s no signed contract, yeah I can sue (anyone and their momma can sue anyone), but how would I win, and justify the money I spent on legal counsel?
At www.dumbleads.com, we justify our legal expenses by thinking about what merchants would do if they figured out how we gently coerce them to sign funding contracts with visits to their favorite restaurant.