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  1. #1
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    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    Hi just wanted to inform everyone that there is a Fraud account going around...Merchant name is George Hildrett and uses "GRH Transport" "All Star Towing"...Becareful!

  2. #2
    We received this file back in July and deemed it Fraud as well (altered banks). He is also going by "Allstar Tow and Repair, LLC"

  3. #3

    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    Not so sure he's fraud he paid us a $300 UW fee but we declined him

  4. #4
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    Quote Originally Posted by 155refi10psf View Post
    Not so sure he's fraud he paid us a $300 UW fee but we declined him
    You mean you charged him a fee upfront just to underwrite his application?

  5. #5
    Senior Member Reputation points: 3217 CO1's Avatar
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    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    This is happening a lot lately Sean. . . . . . I have heard from numerous broker shops that do that. . .

  6. #6
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    It's illegal from what I understand.

    Check out advance-fee loans on the FTC's website.
    Last edited by Sean Cash; 03-07-2015 at 09:59 PM.

  7. #7
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    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    Sean- do you think they really care?

  8. #8
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    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    You can't charge a non-refundable upfront fee when going directly to the consumer...however because this is b2b and not technically a loan...it might be "legally" okay.

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  10. #10
    Senior Member Reputation points: 3217 CO1's Avatar
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    Quote Originally Posted by anydealfunded View Post
    You can't charge a non-refundable upfront fee when going directly to the consumer...however because this is b2b and not technically a loan...it might be "legally" okay.

    See this Sean. . This is what we are dealing with.

  11. #11
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    We use decision logic to get bank statements verified as soon possible. It use to be much easier to spot altered statements.

    As for fees maybe something like this could serve as a model:
    http://www.slate.com/articles/news_a...n_company.html

  12. #12
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    I can confirm this thread about this merchant he took us for $18k back in October and it seems he is looking to take as much as he can from anyone else. We used Decision Logic on him back then and everything came up fine.

  13. #13
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    As for fees maybe something like this could serve as a model:
    http://www.slate.com/articles/news_a...n_company.html[/QUOTE

    LOL. For the record I don't take an upfront fee.

  14. #14

    1st GLOBAL CAPITAL FINANCIAL SERVICES-Beware of Fraud

    Charging an upfront underwriting fee is unacceptable. Lenders should stop doing business with brokers that do so. Same for fees charged by brokers after a deal got funded (I've seen up to 15% on the funding amount!!) Merchants are already having a hard time with the high rates, they should not get charged any other bs fees. Same for lenders that charge 10% for UCC , ACH,....fees on a 40%+ factor.

  15. #15
    jotucker1983
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    What On Deck Capital is doing right now for every Broker Shop that's working with them, is what every single Direct Lender ought to be doing right now, and that's conducting background checks on their Brokers, as well as making sure there's no additional fees being tacked onto the financing outside of the Direct Lender's Agreement.

    The Broker's "fee" should be added onto the cost of the loan up to a particular limit, so if the buy rate is 1.15 you shouldn't have no more than a mark up of 10 points on there to 1.25. Any Broker caught adding fees outside of the Direct Lender's Agreement should be immediately terminated from their relationship with said Direct Lender including outstanding renewals/residuals from clients already submitted.

    If we don't clean up the industry, then all we are going to do is invite The Government to come in here to do so, and nobody wants that.

    It's also annoying to me to see ads up everywhere across the internet recruiting people to come into the industry and they always pinpoint that you don't need any prior merchant sales experience, any prior sales experience, any prior B2B experience and no college education completed. Basically, all you need is a pulse and you can jump on the telephones "selling" a product that most of these individuals can't even spell.

    Every Direct Lender should begin to regulate their Broker Shops to assure integrity, credibility and professionalism. There's way too low of a barrier to entry into our industry and it's just unprofessional in my opinion.

  16. #16
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    Quote Originally Posted by CO1 View Post
    See this Sean. . This is what we are dealing with.
    Amen Brother!!

    There is one Broker shop in Vegas that tells Merchants they were approved for up to 50%-100% of their yearly gross at a 1.10- 1.12 3 year term, HOWEVER they had to pay $2500-$5000 UP FRONT to show they were serious!(in addition to a $500 "Application fee"). I got an offer for a client and had to convince them it was total BS. "Sorry, Mrs. Smith, but the $500,000 10 year term doesn't exist but here is $90,000 for $125,000!!"

    The type of Broker/shop that does this just flat out does not care.....

  17. #17

    A fee for doing nothing

    Quote Originally Posted by JSL23 View Post
    Amen Brother!!

    There is one Broker shop in Vegas that tells Merchants they were approved for up to 50%-100% of their yearly gross at a 1.10- 1.12 3 year term, HOWEVER they had to pay $2500-$5000 UP FRONT to show they were serious!(in addition to a $500 "Application fee"). I got an offer for a client and had to convince them it was total BS. "Sorry, Mrs. Smith, but the $500,000 10 year term doesn't exist but here is $90,000 for $125,000!!"

    The type of Broker/shop that does this just flat out does not care.....

    Of all the Insanity I have previously read here this is to new heights in my opinion. Brokers are charging a Business Owner to review and underwrite an application they don't even actually review or underwrite. These are the same shops that are blasting out every submission they get to everyone they talk too. How about a little bit of ethics .... Before we get to legality. These are our clients why not treat them right from the beginning.

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