[Chambo]

Not to marginalize the arguments against stacking or the predicaments that some merchants are in, but since stacking is repeatedly mentioned as the likely conduit for regulation, I feel like it's necessary to comment on it.

An oft-repeated complaint by merchants to media, politicians, and their lawyers is not that they got too much funding, but that in the case of merchant cash advance is that they claim they thought they were loans. Maybe a lawyer reading the contract could see that plainly, but can the merchant? Maybe a brand new sales rep said the word loan in a phone conversation or an email and that sent a mixed message to the merchant. Then if something happens and they seek protection from creditors, they learn the MCA company is supposed to get paid no matter what because they're not a creditor. Or they do some math and come up with a perceived interest rate even though there is no interest rate in these purchases.

This is probably a bigger vulnerability than "I got too much funding and now I'm mad" in an environment where a bank won't even consider lending to them. I'm not saying stacking couldn't become a regulatory issue, just that let's not kid ourselves into thinking there aren't other things to improve.

Just as many funding companies conduct recorded funding calls or interview calls, always assume that the merchant is also recording every call with you. Why wouldn't they? These contracts are between two commercial companies entering into a commercial transaction.

Assume every email you send them might also be sent to a politician if they later get upset. Those press 1 calls? Act as if the FTC is on the receiving end of them. They might actually be.

We can talk about stacking regulation to death, but there's many more things that need to be buttoned up. Does it say 99% approval rate on your website? It's probably not true. Better change it.

Regulation and enforcement could very well start with the basics. What is your product and how do you market it? If you fail that test, then a debate over a merchant selling receivables it arguably already sold will be moot.

You're sounding more and more like me everyday....