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10-02-2017, 07:23 PM #1
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COJs are dead
So the debt relief companies, hitting up the court system every day, looking for fresh judgments, calling the Merchants and coaching them to move bank accounts. This is happening every day industry wide. COJs are dead.
Last edited by MidnightAdvance; 10-02-2017 at 11:41 PM.
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10-02-2017, 08:49 PM #2
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- Mar 2016
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10-03-2017, 08:54 AM #3Karen37aGuest
COJs have always been unenforceable in certain jurisdictions because some think it takes away "due process"The due process clause of the U.S. Constitution, amendment XIV, safeguards each person’s right to notice and the opportunity to be heard in court.
It can be used as a scare tactic. But when some idiot Atty or collections throws someone into default, when they are not in default because they need money, they pretend to serve someone then hold it on the desk until last min so the client/merchant cant react in time...its crosess wayyyyyyyy over the line
This is how people get slapped with usury or "criminal usury", rico etc and they take everyone associated with them down and possibly an entire industry.
The whole Idea of negotiating with someone reasonably is to get the money back with the least negative consequences. Not unjustly enrich an Atty, Funder or Collector...and not let a con artist merchant skip away with money ( If you funded them all, you must been in avalanche mode...I guess you cant tell the good from the bad)
Some people who do not live in a shack and have homes and asssets to protect, do not appreciate being tossed into the mix by some piker who owes child supportLast edited by Karen37a; 10-03-2017 at 09:22 AM.
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10-03-2017, 09:05 AM #4Karen37aGuest
Id like to know from a real Lawyer ....if someone says "tortious interference" does that absolve the broker who got the original application and placed the deal....I would think not
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10-03-2017, 10:11 AM #5
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- Oct 2013
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- New York, NY
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COJs may be unenforceable in certain situations, however it is my belief that COJs most important service is giving the indication to merchants that may be trying to default from the beginning that we are serious about collecting the funds owed,
I truly do believe that it is in the best interest of funders to have more tools than just repeated phone calls threatening collections.
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10-03-2017, 10:15 AM #6
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10-03-2017, 10:23 AM #7Karen37aGuest
I partially agree. Since I do not have "real" experience with defaults in MCA as I had 3/4 ( But I did Debt Relief / Restructuring loan mods for 5 years, credit restoration for 15...almost all mortgage brokers did ) ....I got the money back on 2...sent them into the hospital( while the guy had a heart attack) , tied ones assets to all business( they had 3 the funder didnt know about ) to move forwards. I caught 2 switching their bank accounts and made them switch back one of the wonderful ex brokers on my team told her to do it right before i fired her.
They are a deterannt...BUT using lawyers who are only out for themselves and do shady illegal things is not a good idea
and they shouldn't really step up to someone who has been in Finance for 30 years saying call me "mr" anything,( who was on their side ) then throw you under the bus for someone not in default
No reason to provoke the devil in people and go to all-out war on 4kLast edited by Karen37a; 10-03-2017 at 11:10 AM.
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10-03-2017, 10:37 AM #8
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10-03-2017, 10:43 AM #9Karen37aGuest
Funders should realize everything that you are seeing some Ethical Isos are seeing live and have been seeing it live...people right in our face doing it and we are blocking it.
Then some of you backdoor us or try to...as a thank you
Any Iso or broker who sees anything shady...exit stage right instantly like I did
When Funders toss brokers under a bus its a sign they are illiquid...runLast edited by Karen37a; 10-03-2017 at 11:03 AM.
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10-03-2017, 11:27 AM #10
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10-03-2017, 11:30 AM #11
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10-03-2017, 11:40 AM #12
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- Mar 2014
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[COJ are most deff not dead. Yes there are companies that are looking for filings and sueing MCA companies for filing them. Why dont you check the court system and see how many actually have been successful. There have literally been about 2 or 3 rulings against the COJ, and both are being appealed.
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10-03-2017, 12:17 PM #13Karen37aGuest
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10-03-2017, 12:38 PM #14
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- Apr 2017
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- Dallas
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Bang Bang
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10-03-2017, 12:48 PM #15Karen37aGuest
I have seen numerous different cases, different states, cojs, usury, rico and I have seen the decision swing both ways.
A lot of them have hung on the misrepresentation on the front end by brokers or Funders.
Saying "guaranteed" "loan"...merchants not understanding or claim to not understand when they do not want to pay it back or brokers not explaining things right...contracts not being written correctly ( which void them )
***[The funder] fails to point to a non-recourse provision in the Merchant Agreement by which it assumed the risk that it might not be able to collect payments from [the business’] account receivables. Merely telling the Court that risk is contemplated under the terms of the parties’ agreement is inadequate. The requirement of a guarantor, along with the other facts and circumstances set forth, demonstrate that the principal sum advanced was absolutely repayable with calculated interest that exceeds the legal rate, and supports a finding that the evidence outweighs the presumption against a finding of usury.”
*As a result, the court vacated the confessed judgment and voided the agreement, stating, “[d]enominating a loan document by another name, as in this case, by calling it a Merchant Agreement, and including in it verbiage of [the funder’s] purported purchase of accounts receivable that is unsupported by actual [business] receivables dedicated to repayment, does not shield it from the judicial determination that it contemplates a criminally usurious transaction, which is void ab initio as a matter of law.”**Last edited by Karen37a; 10-03-2017 at 12:52 PM.
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10-03-2017, 12:58 PM #16Karen37aGuest
To put someone in default that was not in default opens you up to so many things that some have not thought of yet
you get the wrong lawyer on the back end or some broker who you think is in the basement of their house you can cause havoc on people
always make an attempt to get the money back yourself, call the iso or broker, they can usually help ...and do not tell someone to be nice, when its you who should be nice
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10-03-2017, 01:03 PM #17
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- Apr 2017
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- Dallas
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Lets all just stop sending deals to Lenders that COJ and and eventually they will all lose a lot of money and stop COJing. Without us they are nobody. Strike Strike Strike
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10-03-2017, 01:06 PM #18Karen37aGuest
Last edited by Karen37a; 10-03-2017 at 01:09 PM.
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10-03-2017, 01:45 PM #19Karen37aGuest
Also you cant sign an agreement or a mutual compromise to hold harmless that has a criminal element to it...a crime cant be mutually compromised. Also, federal law states that they might not hold up any agreement that was coerced or signed under duress.
So I roll my eyes at those too.
huge waste of my time..hope it ends the next 2 days and no more snakey moves...so we part waysLast edited by Karen37a; 10-03-2017 at 01:49 PM.
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10-03-2017, 01:51 PM #20
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- Sep 2012
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- New York, NY
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It depends on which state you file your COJ in. Some states don't give it much weight and others will go after the merchant's bank accounts like a jilted ex-wife.
Last edited by MCNetwork; 10-03-2017 at 01:53 PM.
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10-03-2017, 02:33 PM #21
These debt relief guys are really messing up our collection especially when we are giving good pricing-
They will find your client either way! Tell your client they can work with you for FREE and not charge another fee to destroy the credit and their future.
Any update on that big lawsuit that slammed those debt relief guys that were also funders?
Jonathan Kohanoff
B.R.E. #01962090
Diamond Business Loans
Beverly Hills, CA 90211
www.DiamondBL.com
jon@diamondbl.comLast edited by DiamondBL; 10-03-2017 at 02:36 PM. Reason: Adding Signature
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10-03-2017, 03:47 PM #22
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- Mar 2016
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- 657
Tough to say. I've had certain deals where it's a waste of space and paper, but other times it locked up the defaulted merchant's account so fast and we got our money back. So, not sure "dead" is the right word to use
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10-03-2017, 04:59 PM #23Thank you,
Allison OBrien
Director of ISO Relations
Office: 215 - 613 - 2966
Toll Free: 855 - 809 - 5371
Mobile: 215 - 678 - 6650
Fax: 347 - 745 - 3393
Email: allisono@powerfunding.com
Find us online at http://powerfunding.com/
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