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08-06-2018, 01:33 PM #1
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Renewal Issues
Has anyone else had issues with A funder's that out of the blue, they email you to tell you they are not going to pay you on a renewal that funded that day? When questioned, they pulled out an ISO agreement and highlighted a section that states if you don't fund a deal within 90 days, they will essentially take your book of business and not pay you. It is a vague clause as it says refers within 90 days but also states funds. We filed a complaint with the BBB for starters but the more I think of this, it is the first time anything like this has happened. There is a small book with this funder and we are told we HAVE to fund with them to get paid on renewals. It is a well known company that many use, so, curious if anyone else has had a recent issue like this as it is concerning. I believe they are also a SBFA member.
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08-06-2018, 01:51 PM #2
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It's in our ISO agreement as well I believe, but any ISO of mine that got a merchant funded with me and didn't do business with me for whatever period of time always got paid on their renewals. I guess it will boil down to your ISO rep's financial situation, if someone needs to STEAL to get by, they will. Good luck.
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08-06-2018, 01:53 PM #3
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08-06-2018, 01:56 PM #4
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08-06-2018, 01:57 PM #5Karen37aGuest
30% of the Funders do this and they terminate for lack of production or unreachable quotas . Its common place.
Thats how the fights happen and how books of business's get moved from place to place on top of the backdooring
( thats why I am yelling ...where the f are your renwals to certain people, when they put down the super iso concept)
it comes down to the strongest salesperson wins
And this is why small isos join larger ones to make the quotaLast edited by Karen37a; 08-06-2018 at 01:59 PM.
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08-06-2018, 02:00 PM #6
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Quota for ISOs and 1099 Contractor's, now that's interesting.
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08-06-2018, 02:02 PM #7Karen37aGuest
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08-06-2018, 02:02 PM #8
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Forcing a 1099 contractor to fund business with you can be easily interpreted as an employee. That's a fine line to enforce.
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08-06-2018, 02:03 PM #9Karen37aGuest
I agree...and because I was compliance for so many years I know it
This is why I went way out of my way to get away from non iso friendly... non-renewal friendly companies
And I hold a 95% renewal ratio..100% with some...i block the stacks and defaults...win win...we all get paidLast edited by Karen37a; 08-06-2018 at 02:09 PM.
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08-06-2018, 02:10 PM #10
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The ISO agreement also blocks any class action suits. So, assuming they picked a % of the ISO book to do this to, legal made sure to block out this clause as well.
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08-06-2018, 02:12 PM #11Karen37aGuest
I do not think that's enforceable,,,, taking away due process...
but who knows...I am not a lawyer
Ps ...this is how they get stacked and the deal gets passed ...no one wants to argue these points. I just avoid these companies ...easier for me...you do not want my business, dont take itLast edited by Karen37a; 08-06-2018 at 02:15 PM.
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08-06-2018, 02:14 PM #12
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08-06-2018, 02:15 PM #13
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lesson learned here is, the ISO agreements are not written to protect the ISO. Even the smallest skip on reading them can lead to future problems. That said, the day you have to take an ISO agreement, highlight a clause like this and enforce it, speaks volumes to how you conduct business. I hope if the SBFA broker association is formed, they form an ethics committee to handle some of these issues. If they take on the fight, they may find that ISOs are more inclined to pay the monthly dues. There are issues happening on BOTH sides of the fence.
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08-06-2018, 02:16 PM #14Karen37aGuest
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08-06-2018, 02:17 PM #15
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08-06-2018, 02:19 PM #16jotucker1983Guest
Yes, this issue has been going on for a while now. I touched on it in this thread here and also in another article here.
The practice takes place most of the time with the funder randomly changing their compensation structure to include new deal quotas. So you sign one Agreement at the time of sign up, then randomly they just change the Agreement.
It goes back to the need for more forms of regulation and oversight within this industry because it's too much of a Wild Wild West. If I'm truly a 1099 employee with no benefits, no marketing assistance, no leads, etc., from the Funder, then what exactly is the issue with paying me for the lifetime duration of the client's relationship considering the fact we are partners?
There should never be a new deal quota for a 1099 agent.
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08-06-2018, 02:19 PM #17Karen37aGuest
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08-06-2018, 02:22 PM #18Karen37aGuest
And the worst/ best most ironic part of ALL of this
some * B/C/D Paper treats isos WAY better than 80% of the A paper
Which is why they call for regulation against the Isos and broker...not themselves
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08-06-2018, 02:22 PM #19
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This industry is getting worse.
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08-06-2018, 02:22 PM #20
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^ yes, if you have sub reps referring you business, this practice will absolutely put you in a bad position and damage you company's name.
on the other post, if your a 1099, you are not an employee. you are a 1099. you cannot force a 1099 to wake up and sell for you, work 9-10 hours a day, etc etc. they are a contractor by definition. These clauses are being inserted to STEAL YOUR BOOK OF BUSINESS.
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08-06-2018, 02:25 PM #21Karen37aGuest
Yep
Welcome to the club
You have bled with Wallace...now bleed with me
https://www.youtube.com/watch?v=eclbaC3q94k
( this is also why I like when the inside Funders rep gets paid a bonus on what I do...they want me to make money because they make money)
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08-06-2018, 02:31 PM #22Karen37aGuest
Last edited by Karen37a; 08-06-2018 at 02:35 PM.
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08-06-2018, 02:37 PM #23
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I would encourage any hard working agent or ISO to read the ISO agreements. Because someone verbally tells you "it will never happen with me" but its still in the agreement, not good enough. If it's written, its a loophole to get out of paying you. My bet is a majority of ISO agreements are being signed without really understanding these "outs" nationwide. No telling how many brokers get stiffed annually and how many $$$s that funder keeps to themselves by having these clauses. It has to be significant.
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08-06-2018, 02:38 PM #24
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08-06-2018, 02:39 PM #25Karen37aGuest
Not you hdf ...some funders ..
And someone personally hammered MANY brokers who did nothing wrong...nothing but hook up with the wrong company by accident.
Some people will never forgive some of you or the merry band of misfits who have no clue and shouldn't be in FinanceLast edited by Karen37a; 08-06-2018 at 02:41 PM.
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