Results 1 to 11 of 11
-
03-29-2024, 05:36 PM #1
- Join Date
- Feb 2024
- Location
- NY
- Posts
- 77
MCA Default Rate & Court Filings Are Bananas!!!
I've heard a lot about merchant defaults from brokers, on df, and from merchants themselves when a caller. I was looking up an old lead to check his background on google and merchant had numerous defaults. But what was astonishing was the rate funders are filing default judgments. Here's just 2 days of filings in Kings/Ontario County courts crazy in the months of Jan/Feb. Reconciliation is definitely not at play here.
Jan 10 - https://unicourt.com/courts/state/ki...S=ct_ltst_view
Feb 02 - https://unicourt.com/courts/state/on...&init_S=c_brcm
That type of systematic filing can only lead to one thing for these funders. An equal and opposite negative reaction from defendant attorneys who will use new usury case laws as a means of defense etc. In turn, these funders should hope the contracts they are suing for are compliant. If not, you told on yourself, no one else to blame but yourself. All it takes is one ambulance chasing MCA recovery attorney to recognize that the contract in question is usury, case dismissed and a new one on plaintiff being filed by what's her name.Last edited by JustInCase; 04-02-2024 at 08:23 AM.
-
03-29-2024, 09:31 PM #2
- Join Date
- Mar 2024
- Posts
- 247
Pretty sure this is always, lot of sick terms come from those funders listed too. Lol
-
03-30-2024, 12:14 AM #3
Yup.....the end is near....diverify or die...gives you a reason to look at adding non MCA products to your product offerings....and learn how to be a real loan officer....
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
03-30-2024, 01:44 AM #4
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
03-31-2024, 09:06 AM #5
- Join Date
- Feb 2017
- Posts
- 3,450
As usual Dave, you are probably clueless as to what happens in MCA.
Go through the list of the defaults, and that's generally the case.
They either completely stopped payments, or they opened a new account and diverted all of their sales to the new account, preventing the withdrawals.
Instead of requesting reconciliation, they just stopped payments.
I'm not saying that every funder is perfectly right or make it easy for reconciliation, but the complaints on these lawsuits are actually what you're describing.
This is why funders must to have it "easy" to adjust their payments. This should be through outsourcing reconciliation departments, CC splits or automatic weekly monitoring and adjusting.
-
03-31-2024, 11:25 AM #6
- Join Date
- Mar 2024
- Posts
- 247
Wonder how many of these payment stop and account changes are a direct result of ISO fraud (carrot fake products, lies etc)
-
03-31-2024, 02:11 PM #7
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
04-03-2024, 11:21 AM #8
- Join Date
- Feb 2018
- Posts
- 1,349
there has always been a lot of court cases in NY for breach of contract. this isn't a new phenomena . maybe an uptick has occurred, but, examine the companies filing. are they mainly stacking companies or first position only companies? are they funding too high of a holdback causing merchants to sink?
-
04-03-2024, 11:57 AM #9
- Join Date
- Mar 2024
- Posts
- 247
-
04-03-2024, 07:21 PM #10
- Join Date
- Dec 2023
- Posts
- 2
-
04-03-2024, 09:06 PM #11
- Join Date
- Mar 2024
- Posts
- 247
Similar Threads
-
Thoughts on current collections / default rate?
By ghost in forum Merchant Cash AdvanceReplies: 36Last Post: 12-30-2022, 01:08 PM -
What is the default rate for a high risk funder?
By pcfunder in forum Merchant Cash AdvanceReplies: 8Last Post: 07-01-2020, 08:13 PM -
Merchant Cash Advance Company Default Rate
By KanjorskiPartners in forum Merchant Cash AdvanceReplies: 16Last Post: 04-08-2020, 02:56 PM -
i want to eat eat eat apple and bananas!!!!!
By kingcash555 in forum Merchant Cash AdvanceReplies: 0Last Post: 12-10-2018, 02:25 PM -
Average Default Rate
By Joe Dough in forum Merchant Cash AdvanceReplies: 26Last Post: 10-23-2015, 04:19 PM