[brokerCompany]

How many other brokers or isos will be pulled into this?

[SFllc]

The REAL problem here is Letitia James!

[whiterabbit]

Is this the result of the wording in their contracts itself that caused this shake up?

It looks like it has more to do with the fact that they didn’t ever really reconciliate even when the merchant asked them to do so. That they added the clause in the contract but never had any intentions of actually purchasing the receivables at a specified percentage, but rather daily fix payments. They mention from multiple witnesses in the company that the % was just made up number and that the daily fixed payments were all they cared about,

[TheUnderwriter]

The REAL problem here is Letitia James!

She is dumb for sure. But NY gets what it Votes for. Got a bunch of libtards ruining NYC and the State so its no shocker this is happening.

[KINGCASH]

The usual suspects.. Play by the rules- you’re good

A little law and order will hopefully wean out the used car salesmen

Happy funding

[goldenhippo80]

The REAL problem here is Letitia James!

Lol were you one of the named parties?

[Mariquita Préstamo]

Oh boy!!!
In my 15 years in the MCA business, I have seen it all.
While there are some in our business who are unscrupulous, our indistry is a vital source for businesses to get funding they need quickly.
I will hold my opinion on the NY AG who herself is a discrace to the legal profession.

https://ag.ny.gov/press-release/2024...tion-targeting

[abfunders]

BTW, all of the DBAs might have also been a very interesting method to white-label.

[Chambo]

As far as "impartiality of the law" is concerned, this press release was a constant presumption of guilt. I had problems with the article, and I had ChatGPT and Gemini read it to make sure I wasn't crazy and this was the analysis of problems, here's what we came out with:

- Strong and prejudicial Language used: "illegal" "fraudulent" "scheme"
- Focused negativity on alleged wrong-doing, ignoring balanced information
- Presenting the Attorney General's perspective as fact
- Seeking immediate remedies rather than waiting for trial

Press-releases are one-sided by nature, this one takes the cake.

This is a complaint in a civil case. She can make allegations.

Considering her recent court victories against Trump and other MCAs, I wouldn't bet against her

The Mafia figured it out years ago..."never mess with the Gov't, as they are the biggest racket out there"

[fundinggrasshopper]

This is a complaint in a civil case. She can make allegations.

Considering her recent court victories against Trump and other MCAs, I wouldn't bet against her

The Mafia figured it out years ago..."never mess with the Gov't, as they are the biggest racket out there"

Agreed the allegations are aggressive because they must be,
she has opened up what will become a very long and costly legal battle with all of the essentially unrelated entities

in my opinion - she threw out a big net , expanding the on core issue of the previous lawsuit, but the time/cost it will take to litigate with each complainant will be the detriment of a very audacious complaint

[Chambo]

Agreed the allegations are aggressive because they must be,
she has opened up what will become a very long and costly legal battle with all of the essentially unrelated entities

in my opinion - she threw out a big net , expanding the on core issue of the previous lawsuit, but the time/cost it will take to litigate with each complainant will be the detriment of a very audacious complaint

Will only be expensive to the defendants. Nothing is coming out of her pocket & all she has is time. You guys here sure as hell aren't voting her out of office.
She most definitely is piggy backing on her previous cases.
A case like this, unfortunately, she REALLY wants the entities gone, dissolved, bankrupt. She will use this is her ovious upcoming run for Governor, to show that she stands up for "the common man."

[Kevin Henry-Seacoast]

There will be more of this to come and not just in NY....... Regulators tend to enforce from the rear-view mirror. When bad things happen to customers, they enforce and keep digging. Keep in mind what happened in recent weeks with another alternative finance company CEO's house being raided. They won't be just looking at MCA......they will be looking at ALL.....ALL unregulated and regulated finance companies.

[Shorebird]

For sure, they are going to gather up all the evidence they need via civil discovery and refer to criminal once it's all gathered up.

[Kevin Henry-Seacoast]

For sure, they are going to gather up all the evidence they need via civil discovery and refer to criminal once it's all gathered up.

They will follow the paper and money to circle up anyone involved. Remember.....When a South Florida firm blew up.....The courts went after everyone..... The company, their principals, people who raised money for them, their accounting firm/attorneys, and even brokers who sent the deals......

[Franklin]

You can still do dailies, but you will need to reconcile with the merchant constantly, and the dailies cannot go over a certain % of receipts.

But really, lockbox and the split funding will make a HUGE comeback

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.


There are additional ramifications the suit doesn't mention that could possibly come out during discovery and open an even bigger "can" for these companies, but I won't be adding any fuel to this fire.






www.UccRadar.com - Large sales volume merchants, filling out your application.

[closer129]

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.


There are additional ramifications the suit doesn't mention that could possibly come out during discovery and open an even bigger "can" for these companies, but I won't be adding any fuel to this fire.






www.UccRadar.com - Large sales volume merchants, filling out your application.

probably 20% of my companies book are cc splits via direct or a lockbox. It is not hard at all to set these up and sell the merchant. The issue is most brokers do not know how to sell and do not care about the merchant they just want to push either the easiest deal or most money or both and not have to wait a few extra days to get paid. If more brokers did the right thing they would sell more deals and have a bigger book of renewals because the merchant wont bounce a ton of payments on the set high ac payment.

[abfunders]

Lockboxes and split funding were such a pain in the neck. It adds more time to completing the deal, more coordination with more people now (sales and tech) and more selling and coercing to get the merchant to switch processors when necessary, (which was never a 100% sure thing even when justified), all of this leading to lost deals.


I think it'll be more efficient to setup some weekly reconciliation, with an automatic refund at the end of each week as needed.

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

[closer129]

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

Thank you for that little shout out.

Going into some ones bank every week and seeing what they deposited to see what the sales is not very cost efficient. You will need to hire more people to just handle that job and then the cost of the money will need to go up. If you go into the bank and the prior week was higher and you raise the payment for the next week but if the sales during the next week or lower it can cause the payment for the next week to bounce. When you take into consideration the merchants daily balances and their profit margins and do not go over a certain percentage of the gross there should never be an issue of the remit having to be changed week to week. When you are going out over 25% of the merchants gross and see that they keep more in the bank on a daily basis than than the payment then that is not a good thing and there will always be issues with the payments.

[mistamca]

Lockboxes are definitely harder to set up, which is why ACH same-day funding became popular. Then people started taking advantage of this and now we're in this mess. Franklin, come up with a system to do the remitting and sell it. Fundkite came up with a system, I don't think they're interested in selling it, but it's certainly the best of both worlds. Also, add an option for "ceiling", I don't think that Fundkite does that. It mirrors CC splits and Fundbox, but the only thing is that you need to convince the merchant to allow the Plaid link to their bank account to stay for the course of the advance. If a funder would be smart, they'd also allow for add-ons (like TMR and Quikstone) to separate themselves from the pack to give that extra reason to stay with them. (Also, because there's monitoring, keeps them on their honor not to stack....)

I've been playing around with this idea for a while. It's not that difficult to have a system to do the heavy lifting but the devil is in the details and categorizing revenue has always been a bit problematic and credit unions are just not fun

[Franklin]

Thank you for that little shout out.

Going into some ones bank every week and seeing what they deposited to see what the sales is not very cost efficient. You will need to hire more people to just handle that job and then the cost of the money will need to go up. If you go into the bank and the prior week was higher and you raise the payment for the next week but if the sales during the next week or lower it can cause the payment for the next week to bounce. When you take into consideration the merchants daily balances and their profit margins and do not go over a certain percentage of the gross there should never be an issue of the remit having to be changed week to week. When you are going out over 25% of the merchants gross and see that they keep more in the bank on a daily basis than than the payment then that is not a good thing and there will always be issues with the payments.

Well, if you're using a refund system, the daily debit will never change. Just the amount that goes back to the merchant each week, if an adjustment was needed because sales dropped.





www.UccRadar.com - Large sales volume merchants, filling out your application.

[TheUnderwriter]

TVT got hit too apparently. They done?

[Russell]

TVT got hit too apparently. They done?

where was there anything abt TVT?

[whiterabbit]

That's not the real TVT that's listed in the lawsuit, that's not the real Fundworks either, the white label funders, used the names that were similar to other companies to confuse merchants into thinking it was other companies, real shady **** here.

[abfunders]

That's not the real TVT that's listed in the lawsuit, that's not the real Fundworks either, the white label funders, used the names that were similar to other companies to confuse merchants into thinking it was other companies, real shady **** here.

It probably was not underhanded backdooring to confuse the merchants. I think that TVT and others were using the Yellowstone name as a sophisticated way to white-label to fund their "C-D paper" stuff on the Yellowstone platform. Just register the DBA with the bank, open a new account, all draws come in and out of that account, nobody's the wiser that it's 100% Yellowstone's money. It could also be syndicated in that same way. If Yellowstone was really using the other big funders' names without telling them, we would have had at least one lawsuit and it would have stopped, Company names and DBAs are not hard to find out and research, it's almost all public record. The fact we know of Zero lawsuits on this is the only proof that I need.

[diditevenfund]

Thank abfunders is spot on.