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09-07-2018, 01:30 PM #1
Reputation points: 86941
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everyone thought folks would walk away after AMI got sued in Cali. Today, CA still remains one of the largest markets for the business. Being transparent doesn't mean you have to walk away. Just disclose your rates fees etc and you will be fine. when you borrow a payday loan, the APR is disclosed. It's not pretty but its disclosed. As far as saying an MCA cant be put into an APR, the majority of MCA's today are repaid with a fixed daily or weekly repayment vs through a variable cc split. If you have a fixed repay product, you can state the APR.
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09-07-2018, 01:32 PM #2Karen37aGuest
Most cant sell 1.20 or 1.25 on paper let alone 51% apr ..200%
Salespeople will survive...I am most likely going to get a licence in Calif if it passes, so are other brokers/isos that I know ..
It was never 100% in my best interest to fight regulation..it was just the right thing to do
( which is why they speculated that I cant get a licence...but some people are not motivated by greed alone...it would be nice to keep the mca industry alive....the guys who sell on rate and need low rates will be gone though, thats a beneift _ the ones who were slandering me lol )Last edited by Karen37a; 09-07-2018 at 01:40 PM.
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09-07-2018, 11:48 AM #3Karen37aGuest
This was a doozy of a fight... I think west coast was commenting on von mise
https://dailyfunder.com/showthread.p...Dodd-Frank-Act
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And here is the actual result article Sept 2018
http://www.investmentnews.com/articl...FREE/180909974
The Department of Labor's fiduciary rule led to "tremendous" losses for brokerage and other investment firms, causing billions of dollars to be shed from their market valuations as investors feared the rule would hurt profitability, according to a new report.
The report examines the stock prices of 36 publicly traded brokerage, mutual fund and life insurance companies, finding they lost a total $14 billion in value as a direct result of the fiduciary rule.
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BICE
June 21, 2018, the U.S. 5th Circuit Court of Appeals officially vacated the rule, effectively killing it. The rule, and the cost and burden of complying with it, was the source of much anxiety among financial advisors. In the original draft, there was a requirement of ongoing disclosure of compensation over the life of a product, no clear limits on liability which would be decided by the plaintiffs’ bar.
Read more: Best-Interest Contract Exemption (BICE) Definition | Investopedia https://www.investopedia.com/terms/b...#ixzz5QQwghRsP
Edit Add*** ...my comments on BICE https://dailyfunder.com/showthread.p...her-industries
*** this Calif bill will most likely go into appeal and then be challenged to be vacated
https://www.natlawreview.com/article...ce-disclosures
Unless industry trade groups can persuade Governor Brown not to sign this poorly drafted bill, many companies offering commercial financing in California will have to choose between challenging the law in court and limiting the financing options they offer in the state. For example, companies may stop offering merchant cash advances and analogous loan products, depriving California merchants of the ability to align their financing obligations with their cash flow. This surely is not the result intended by the bill’s sponsors.
( but I said that would be the net result)Last edited by Karen37a; 09-07-2018 at 01:30 PM. Reason: add bice comments
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09-07-2018, 01:43 PM #4
Reputation points: 503040
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The net effect will be that merchants will flip out when they see the rate, and say they’ll NEVER take the advance.... the day before they take the advance.
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09-07-2018, 01:46 PM #5Karen37aGuest
Want to bet me?
You are talking to a girl who sold jack la lane health club memberships( when she was 17) ...10k after finance costs...coj like .to people who showed up once and never came back again LOL
add* since the fuzz is watching...they had 3 days to cancel and its not my fault they never game backLast edited by Karen37a; 09-07-2018 at 01:50 PM.
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09-07-2018, 01:51 PM #6
Reputation points: 503040
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No business likes an MCA’s rates. They take the MCA because they have a need, and because an MCA is the only option available. There will still be a demand for money. And as long as MCAs are the only financing option to address the subprime need, it will be business as usual.
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09-07-2018, 01:52 PM #7Karen37aGuest
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09-07-2018, 01:54 PM #8
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09-07-2018, 01:44 PM #9
this bill is a done deal and is going to pass. Unfortunately other states now have something they can use as a model and this is where we as an idustry can get screwed.. California has always been a harder state to get deals done in because a lot of companies require a lending license, this bill passing will not have a huge affect on the industry. Where we will have a problem is if this bill becomes the model for other states to use for their own regulation. This is why it is important to have a voice in the room fighting so that any legislation that does pass in terms of regulation doesn't kill us.. Anyone who thinks there wont be more bills like this in the future in other states is kidding themselves.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 04:35 PM #10Karen37aGuestThis is why it is important to have a voice in the room fighting so that any legislation that does pass in terms of regulation do
there were three major voices who went to the legislation to give their opinions
1) That I have been disagreeing with from the start
2) I was neutral on
3) I don't like their rates but side with them ( because I do not want regulation)
the # 1 created this and thought it would knock D paper out...and we do not have to see me repeat myself again...I said it wouldn't just knock D paper out
So what are you supposed to do when all sides don't agree? Type word salad like I did because they can see this.
Unfortunately what I have found on wall st is the ones who are really book smart...have no street smarts, And for some reason cannot see the negative consequences until after the fact. The too street smart ones do not give a crap ...and the people in the middle suffer
Everyone have a great weekend and Happy Rosh Hashanah to those who celebrateLast edited by Karen37a; 09-07-2018 at 04:40 PM.
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09-07-2018, 02:02 PM #11
What does gym memberships have to do with anything here? And how does that have anything to do with what is going on in California?
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 02:04 PM #12Karen37aGuest
You never seem to understand ...re-read it
Some people are STILL going to make sales...do not kid yourselves. The only people hurt are the non-sales people ( the ones who wanted the regulation)
I told you this numerous time
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Add.To sum this up The brokers who couldn't make sales before will never make sales now. Regulation is never good...you can't let them in ever, once they get in they come for more and more and more and more. People will get sued because of regulation, thats why they put it in place. When people get money at a high rate they will always look for ways to not pay it back...always. And they lie they will say anything to get out of it.Last edited by Karen37a; 09-07-2018 at 02:15 PM.
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09-07-2018, 02:13 PM #13
I am not looking at this from a sales perspective. How many ISOs will be able to afford lending licenses in different states? How many banks will be able to keep paying the commissions they pay if they can't charge the rates they are charging now? This law in California basically is making an MCA illegal, meaning only loans allowed. If that law spreads to other states this industry is screwed. California is now an A and B paper only state after this passes.. All the lower level lenders who offer MCAs will not be able to lend in the state. What good is being able to sell something if there is nothing to sell
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 02:16 PM #14Karen37aGuest
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09-07-2018, 02:24 PM #15Karen37aGuest
I made 3900 posts explaining all this...this and fighting off people slandering me
dont say I didnt try
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09-07-2018, 02:26 PM #16John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 02:29 PM #17Karen37aGuest
wrong
go read my posts on self regulation and the creation of Finra / Nasd
ta ta ..
The answers lie in better underwriting/algorithms...not black box underwriting algorithms. Unfortunately that leaves their fate in the hands of salespeople and people want automation( more profit to the top) ...and it cant work long term
Salespeople are King
I know how to get less defaults, unfortunately, its proprietary to me
Market share is going to big entities...and it will get worse...salespeople on the phone can survive, and face to face,,, not SEOLast edited by Karen37a; 09-07-2018 at 02:37 PM.
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09-07-2018, 02:38 PM #18
Reputation points: 338677
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- 3,485
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-07-2018, 02:40 PM #19Karen37aGuest
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09-07-2018, 02:24 PM #20
the net result of what selling gym memberships? I dont know what you said 5 years ago so how about we keep it to what is in this thread
Regulation is coming and we as an industry need to get in front of it so that after it comes we still have an industry.. Everyone kept saying there will never be regulation and now because we didnt do anything as an industry sooner MCA's will for all intents and purposes be illegal in one of the largest states in the country. People need to realize how big a deal this can becomeJohn Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 02:26 PM #21Karen37aGuest
Over 3900 posts of me explaining what would happen etc etc
You arguing with me the whole way and others
there is no "good" regulation...once they arein they create a regulation bubble...they go power hungry nuts
( they get paid to create more regulations and have meeting and enforce laws, fines etc)
Have a great weekend
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09-07-2018, 02:51 PM #22
Reputation points: 338677
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- Posts
- 3,485
Bottom Line.... regulation can and will come to every facet of capital markets and financial services. It is inevitable and sometimes needed. I have said this once and I will say it again. Regulations are always put in place because of something that happened in the past. It ALWAYS is put in place to protect the customer first and the stability of the market. If you don't adapt, change, get ahead of what's coming....you will not last long.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-07-2018, 02:53 PM #23Karen37aGuest
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09-07-2018, 02:55 PM #24
what is the over under on the amount of time Karen will say slandering me in this thread before it is over??
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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09-07-2018, 02:56 PM #25Karen37aGuest
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