[Sachip24]

I spoke with a mca lead generator today, was pitching me complete packages for little under $400. App+recent statements. Everything they said sounded to good to be true but is selling merchants personal financial data legal?

[Chambo]

you really have to ask?

[Sachip24]

knew it was too good to be true ::sighs::

[Sean Cash]

I spoke with a mca lead generator today, was pitching me complete packages for little under $400. App+recent statements. Everything they said sounded to good to be true but is selling merchants personal financial data legal?

If it was someone on here, let me know who so I can ban them.

[AndyYSCISOdept]

That is a HUUUUGGGGGEEEEE No - no in this industry (one of a few) but that's a big one

[Jagopat]

Seems like a bad deal, unless he also has the merchants' Driver's License and Voided Check.

[MCNetwork]

If you read the fine print at the bottom of many applications (CAN Capital's for example), it states that by signing the application, the merchant authorizes the funder and each of its representatives, successors, assigns and designees to obtain consumer or personal, business and investigative reports, processing reports, bank statements, credit reports, etc. etc.

So from a legal standpoint, this information can be passed off to another party that meets the definition of "assign" or "designee", which can basically cover anyone. From an ethical standpoint, given the widespread cases of credit card fraud and identity theft, this practice shouldn't be permitted.

[AndyYSCISOdept]

I highly disagree from an ethical standpoint, however to prove wrong doing on legal grounds is a whole other ball of wax

[ridextreme]

If you read the fine print at the bottom of many applications (CAN Capital's for example), it states that by signing the application, the merchant authorizes the funder and each of its representatives, successors, assigns and designees to obtain consumer or personal, business and investigative reports, processing reports, bank statements, credit reports, etc. etc.

So from a legal standpoint, this information can be passed off to another party that meets the definition of "assign" or "designee", which can basically cover anyone. From an ethical standpoint, given the widespread cases of credit card fraud and identity theft, this practice shouldn't be permitted.

that doesn't mean they can sell their personal info (Bank statements, SS#, Etc) for a profit. That's like a major homeland security felony.

[aredmond]

From a merchant standpoint. Once you put your personal information in to the MCA world.....it never leaves. Period.

[RickyR3712]

I do not understand.If he is getting it signed on my application ,what is the difference if I pay him as an iso or just a referral fee per submission. I have openers on salary also.

[funding pro]

I guess you would need more context to be able to really know how right or wrong this is.

If there is someone with an offshore call center that is generating a submission package and is reselling them for $400 and the merchant signs the application saying that they can share their information with the same typical language most ISOs use, I see no harm and would consider buying them myself but would of course recommend speaking with an attorney(I think this answers your main question regarding legality). Financially it would be up to you if that makes sense based on how well you convert them, but is no different than them sending you leads for $50 and it taking you 8 leads to get a submission.

If the person selling you the package is not giving you any insight to where the submission is coming from it would be safe to assume that they are getting them out the back door. Your legal stance in this matter would be more questionable and I would definitely speak to an attorney. Ethically and from a business standpoint, this is something I would not recommend engaging in assuming you are looking to do business the right and legal way.

[funding pro]

If it was someone on here, let me know who so I can ban them.

I wouldn't jump to conclusions here Sean. Is there a good chance it is a deal flying out the back door? Possibly. BUT, I have been approached about buying submission packages from certain offshore call centers and would say this is a much smarter business strategy for a smaller ISO than to hire openers and have to support the overhead and upfront costs associated with generating your own submissions. Especially when an ISO's CPS (cost per submission) could be 1.5-2X that amount. Of course it would come down to ROI more than anything which will come down to whether or not these purchased submissions convert as well/better/worse than generating your own submission in house.

[admin]

I wouldn't jump to conclusions here Sean. Is there a good chance it is a deal flying out the back door? Possibly. BUT, I have been approached about buying submission packages from certain offshore call centers and would say this is a much smarter business strategy for a smaller ISO than to hire openers and have to support the overhead and upfront costs associated with generating your own submissions. Especially when an ISO's CPS (cost per submission) could be 1.5-2X that amount. Of course it would come down to ROI more than anything which will come down to whether or not these purchased submissions convert as well/better/worse than generating your own submission in house.

Backdooring is not the issue. Bank statements and applications should not and cannot be offered for sale here, period.

[funding pro]

I dont think he mentioned he was solicited here but understand your cause for concern.

[HDF]

Is this for real? Buying and selling applications with SS#s, EINs, signatures to copy and other sensitive information along with banking information including routing, account #s, and balances is ok with some people?

Earn your own freaking living! So on top of backdooring (which essentially does the same thing) even the thought of this is suicidal. Where are the "leaders" condemning this?

[RickyR3712]

I am not a lawyer but I do not think you understand how it works.Basically it is a live transfer company that offers on your campaign to have their rep say will you be ok for filling out an app with Ricky company and sending them bank statements.Merchant then emails me my app filled out and 6 months of bank statements to my email and says let see what you got for me ricky.Now again what is the difference if an opener that I pay weekly salary does it or someone that wants to charge me 400 and that's it.
Fyi I did find that company from daily funder and have not used them in over a year,however I still do not understand why it's illegal this way. How is it different then anyone paying me a commission for funding a deal?

[jason]

I can see why purchasing said leads/packages might be (nay, probably is) a terrible BUSINESS idea but I don't see why it would be inherently illegal.

[HDF]

From an unregulated industry perspective, it is indefensible. And doing business in a barely-legal way is a recipe for disaster for sure.

[WestCoastFunding]

"I want to buy this information" -Nigerian princes

[WestCoastFunding]

I spoke with a mca lead generator today, was pitching me complete packages for little under $400. App+recent statements. Everything they said sounded to good to be true but is selling merchants personal financial data legal?

I wouldn't mess with this stuff. By "recent statements" do they mean most recent? Doesn't it sounds like repackaging of declined files?

[Yankeeman07]

Backdooring is not the issue. Bank statements and applications should not and cannot be offered for sale here, period.

You hit the nail on the head.