Quote Originally Posted by Steven_O View Post
Uuf... this sounds like a lawyers dream waiting happen.

Not based on credit.
Not based on revenue (which is why this industry exists)
Based on your association and who you got scammed with.

Sounds to me, like the funders rejecting these files dont want the feds digging in their books when these scam companies finally get busted.

Just calling it how I see it.
That's far beyond as to why.

Merchant's having those types of scams happen raises red flags not just for the Funder, but for the bank as well.

The banks have been closing accounts left and right when Merchants get funded or their debits begin. Especially from these short term high debit "funders." Banks also monitor chargebacks and blocks and if a specific originator has high amounts of chargeback or blocks, they may just outright freeze the account.

This is happening more and more causing an increase in defaults (of cause it was not on purpose)

This makes this difficult if we come across a file that has had this occur. Many funders do not want to take that risk. It's as simple as that.