[Onepointwhat]

The FTC complaint mentions that part of the issue is false advertising surrounding the personal guaranty. Supposedly Yellowstone was advertising no PGs on deals but routinely included them. Does anyone know if the contracts had a true Personal Guaranty or was a Performance Guaranty? Curious if the FTC doesn't care about the distinction.

[Chambo]

The FTC complaint mentions that part of the issue is false advertising surrounding the personal guaranty. Supposedly Yellowstone was advertising no PGs on deals but routinely included them. Does anyone know if the contracts had a true Personal Guaranty or was a Performance Guaranty? Curious if the FTC doesn't care about the distinction.

the gray area was with all the COJs. Pretty much all MCA contracts are a clearly delineated performance guaranty in them, but when you lock up a merchant's personal accounts by adding his name into a COJ, and then go after those personal bank accounts after judgment, you kind of turn the deal into a personal guarantee. THIS is where clarification was warranted. The first step was eliminating the COJ. hat's the next step? Good question....clearly defined PERSONAL GUARANTY? I'll leave this to the jokers with the JDs