[somebroker]

did a 300k 2nd recently, 8 month weekly
merchant missed the 3rd payment, claiming his clients didn't pay them so they couldn't pay.. funder switched to daily and merchant bounced first payment.. funder filed coj 1 day later
tbh, merchant was being a little unresponsive for 3 days, and would not provide login and was generally being a little evasive, probably trying to figure out what to do..
funder filed coj, and the next day called merchant and worked out payment plan with modified payments for two months before resuming original payment amount..
funder claims that once coj filed, auto default and clawback..
1st pos funder does not use coj in contract. i suspect this funder filed so quick just to get the clawback..

not sure there is a supporting argument here as merchant did bounce the weekly, and then immediately bounced a daily, and did not provide login for 48 hours.. anyway does modified payments within the 30 day clawback period equal a default?

any thoughts?

[newunderwriter007]

Yes

[OC Funder]

did a 300k 2nd recently, 8 month weekly
merchant missed the 3rd payment, claiming his clients didn't pay them so they couldn't pay.. funder switched to daily and merchant bounced first payment.. funder filed coj 1 day later
tbh, merchant was being a little unresponsive for 3 days, and would not provide login and was generally being a little evasive, probably trying to figure out what to do..
funder filed coj, and the next day called merchant and worked out payment plan with modified payments for two months before resuming original payment amount..
funder claims that once coj filed, auto default and clawback..
1st pos funder does not use coj in contract. i suspect this funder filed so quick just to get the clawback..

not sure there is a supporting argument here as merchant did bounce the weekly, and then immediately bounced a daily, and did not provide login for 48 hours.. anyway does modified payments within the 30 day clawback period equal a default?

any thoughts?

I would say warranted with the caveat that you attempt to negotiate a return of commission should merchant hereafter stay on track and funder gets PIF. If you have a good relationship with them they may work with you.

[Michael I]

I would say warranted with the caveat that you attempt to negotiate a return of commission should merchant hereafter stay on track and funder gets PIF. If you have a good relationship with them they may work with you.

correct I will just add that as long as it did not go to a third party collection team .

[ryan $]

Its the Merchants Fault, the Evasiveness, Would I personally have tried to work a lil more??? Yea. But were they fully within their rights to file a COJ, ABSOLUTELY. And it is ABSOLUTELY A CLAWBACK - especially if ISO didnt reach out and help get Merchant back on track

[Anthony@torro]

This isn't a default, I dont think a clawback is warranted here. Also, I've never clawed back a commission in my career. If we fund and it goes bad it's on us.

[ryan $]

This isn't a default, I dont think a clawback is warranted here. Also, I've never clawed back a commission in my career. If we fund and it goes bad it's on us.

I disagree. Merchants attitude reflects a lot, he was given a chance by reverting back to daily....... then was evasive.

This is a default. But i dont have a heart.

[somebroker]

Its the Merchants Fault, the Evasiveness, Would I personally have tried to work a lil more??? Yea. But were they fully within their rights to file a COJ, ABSOLUTELY. And it is ABSOLUTELY A CLAWBACK - especially if ISO didnt reach out and help get Merchant back on track

Didn't have much of a chance to work with merchant.. merchants had been depositing 800k avg monthly, no reason to think to stay on top of it..

found out about missed payment on a wednesday.. contacted merchant, said not to worry he was expecting large wire and would send payment by friday.. funder said he'd switch to daily on monday, that payment bounced and coj was filed on Tuesday.. and then wednesday all is well, funder works out payment terms, and everyone is happy.. except ISO

[RickyR3712]

Didn't have much of a chance to work with merchant.. merchants had been depositing 800k avg monthly, no reason to think to stay on top of it..

found out about missed payment on a wednesday.. contacted merchant, said not to worry he was expecting large wire and would send payment by friday.. funder said he'd switch to daily on monday, that payment bounced and coj was filed on Tuesday.. and then wednesday all is well, funder works out payment terms, and everyone is happy.. except ISO

Ouch that hurts. Greenbox clawed back my commission once that missed one payment in the first 30 days even though the default did not happen till 5 months in.Read your iso agreement clearly to see what their policy is.

[Sachip24]

did merchant sign anything in agreements stating if he missed payments it would revert to daily ach? I agree try work something with lender stating if merchant pays off you get your commission back. Did they remove COJ or it still filed?

[somebroker]

did merchant sign anything in agreements stating if he missed payments it would revert to daily ach? I agree try work something with lender stating if merchant pays off you get your commission back. Did they remove COJ or it still filed?

Still filed. According to lender, once it goes to legal there is nothing that can be done. apparently the legal fees are $20k+ to file some paperwork...

[vr0]

Depends on Funder, I’ve had Funders pay back the clawed once merchant is back on track.

[rhum2016]

yes clawback warranted, and yes funder can offer to pay comish back in the unlikely circumstance this merchant pays in full.

[Shorebird]

Par is now moving to 60 day clawback period.

No thanks.