[rld]

This looks like the DOJ is more worried about online lenders and offshore stuff than the MCA industry. I have been under the impression that MCA's have been more legitimized by the good publicity we have received in the last few years by major publications that used to consider us the bottom of the barrel.

Now they are starting to see it for what it is.. a way for merchants to get cash when no one else will give it to them.

If your company hasn't done any fraudulent lending I doubt you have anything to worry about.. just more space for those of us who play by the books in my opinion.

[Sean Cash]

This looks like the DOJ is more worried about online lenders and offshore stuff than the MCA industry. I have been under the impression that MCA's have been more legitimized by the good publicity we have received in the last few years by major publications that used to consider us the bottom of the barrel.

Now they are starting to see it for what it is.. a way for merchants to get cash when no one else will give it to them.

If your company hasn't done any fraudulent lending I doubt you have anything to worry about.. just more space for those of us who play by the books in my opinion.

They are not targeting merchant cash advance companies specifically, but rather banks and processors that have high risk merchants/clients such as payday lenders. There are a lot of ways to draw attention to a possible payday lending or fraud scenario, one being by having a lot of ACH rejects, or a number of R08 bank freezes in excess of industry averages. Merchant cash advance companies are legal but they're high risk merchants, ones that can provoke the DOJ to come take a closer look at the rest of the bank's or processor's books.

Some banks and processors would rather do without the scrutiny even if they have nothing to hide and as such will not do business with merchant cash advance companies or they're dropping them as clients. That's the issue.

[jbrown]

Some banks and processors would rather do without the scrutiny even if they have nothing to hide and as such will not do business with merchant cash advance companies or they're dropping them as clients. That's the issue.

Sean is correct. Our industry issue is not scrutiny of MCA or ACH lending. It is that the banks don't want the hassle or the scrutiny by the regulators. All 3rd party ACH providers need an FDIC chartered bank to get access to the Fed to settle ACH's. If we get caught up in that, it may be a problem. Look at what the banks are doing to payday lenders and porn actors - legal businesses, but checking and banking accounts are being CANCELLED for long time customers and they are being told to take their business elsewhere - because the banks can do that for any depository account, at their discretion.