[MCA-VET]

Anthony are you funding Cali now ?

[Jason Sterling]

We are still funding MCA credit card split deals in California. We remit via Lockbox or direct split relationship with several credit card processors.
The disclosure provision which is a huge element of the law is unenforceable when it comes to the product we sell because of variations in sales patterns creating variations in payment thus you can’t disclose what you don’t know in terms of how many payments, the amount of payments or the payment term. MCA ACH deals would have more of an issue with the law due to fixed payment arrangements. This is another advantage of using our credit card sales based product.

[abfunders]

We are still funding MCA credit card split deals in California. We remit via Lockbox or direct split relationship with several credit card processors.
The disclosure provision which is a huge element of the law is unenforceable when it comes to the product we sell because of variations in sales patterns creating variations in payment thus you can’t disclose what you don’t know in terms of how many payments, the amount of payments or the payment term. MCA ACH deals would have more of an issue with the law due to fixed payment arrangements. This is another advantage of using our credit card sales based product.

Jason, that's awesome news! Is anyone over at Fundkite be able to tell us what they think with regards to their ACH split program?

[Sean Cash]

This is not true. The whole point of the the disclosure law is your specific product to begin with, to create and disclose APRs for unknowable things. Your business model is a textbook case of what the law covers. You have 2 days now to be ready for compliance.

We are still funding MCA credit card split deals in California. We remit via Lockbox or direct split relationship with several credit card processors.
The disclosure provision which is a huge element of the law is unenforceable when it comes to the product we sell because of variations in sales patterns creating variations in payment thus you can’t disclose what you don’t know in terms of how many payments, the amount of payments or the payment term. MCA ACH deals would have more of an issue with the law due to fixed payment arrangements. This is another advantage of using our credit card sales based product.

[kpeng]

The disclosure still applies to credit card splits. The disclosures are required for financial products, regardless of repayment method. ACH Remits are not "fixed", or at least they should not be. ACH remit amounts should be calculated based on a percentage of merchant's calculated average sales at the time of funding. Should merchant's sales deviate, the ACH remit amount should as well. This is why "true-ups" are done on a regular basis.

[Sean Cash]

Split deals are 100% subject to the disclosure law. The state doesn't care if payments can't be predicted or are variable or whatever. That's partially why the law has been the subject of so much controversy. You must disclose an APR and predict.

[Sean Cash]

If you are wondering "where the heck do I even start on this California thing?" It's taken 4 years to formulate the final complex rules. Expect to spend a lot of money on competent legal counsel.

This guide (of which I make no money on referrals or anything) for example, will give you all the basic info: https://www.counselorlibrary.com/pub...ures-guide.cfm Yeah, it's really expensive ($7,000) and you will still ultimately need an attorney to assist you with compliance on top of it but ignoring the law could lead to a place where you are facing millions in fines and lawsuits.

[MCA-VET]

Sean --TY! --Right on!

[fundingsmbs]

I am not sure that is correct @Sterling ^ you can try it out but when the ambulance chasers come knocking you will have to battle that statement and risk paying huge fines or having your contracts deemed unenforceable for repayment. There are case laws in CA historically that thought their contracts were iron clad and both cases were settled for millions of $ . Today, this law takes effect.