[JustInCase]

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.

[diditevenfund]

Pretty sure this is always, lot of sick terms come from those funders listed too. Lol

[Olderguy]

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....

[Yankeeman07]

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 complaint. 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.

Concept To Ponder _ A True MCA Contract cannot have a default - unless the merchant is masking-diverting their daily sales.

[abfunders]

Concept To Ponder _ A True MCA Contract cannot have a default - unless the merchant is masking-diverting their daily sales.

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.

[diditevenfund]

Wonder how many of these payment stop and account changes are a direct result of ISO fraud (carrot fake products, lies etc)

[Yankeeman07]

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.

I knw very well what is occurring in the MCA Market, which is why I only sell 1st positions via credit card split funding.

[fundingsmbs]

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?

[diditevenfund]

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?

Exactly, im sure a lot of these were carrot dangled too with the LOC/Term loan BS and said F this and slammed the account shut.

[Ericv11]

Exactly, im sure a lot of these were carrot dangled too with the LOC/Term loan BS and said F this and slammed the account shut.

Just spoke to a merchant who was pounding his chest loudly over the phone about how he ****ed over a funder by taking $80k and running with it. He said he was scammed with a LOC offer and $30k advance so he got them back.

[diditevenfund]

Just spoke to a merchant who was pounding his chest loudly over the phone about how he ****ed over a funder by taking $80k and running with it. He said he was scammed with a LOC offer and $30k advance so he got them back.

So the guy got scammed by a clown ass broker and then stole 80k from a funder? That wont end well for him.