[Funder Mark]

I was speaking with an ISO today, and he told me he was contacted by a NY based lawyer about sending him clients for a class action lawsuit against funders who use COJ's. Has anyone else heard anything about this?

[Chambo]

I have heard about lawsuits appearing over the COJ, but haven't heard about any class action actions

[AndyYSCISOdept]

I have heard about lawsuits appearing over the COJ, but haven't heard about any class action actions

Same. I don't think this lawsuit will get very far.

[Chambo]

you had better hope not

[Funder Mark]

you had better hope not

WE had better hope not...

[AndyYSCISOdept]

WE had better hope not...

Thank you, what is the you vs we stuff there Chambo? You think you're impervious to lawsuits?

[Michael I]

andy , mark , chambo how far do you sit from each other

[Funder Mark]

I am 3 blocks, they are probably a floor apart...

[Lexgroup]

Seems like the issue has been longstanding though. But like Andy, I don't think there's much to be worried about at this point. Most people who sign one don't even read it. The ones who do usually get an attorney to help them and then decide not to sign it.

[AndyYSCISOdept]

The truth is this, a COJ for all its legalese is primarily a scare tactic against merchants who get any ideas to commit fraud or bounce on the funder without making a payment. It reality a COJ is very expensive and really hard to enforce. Now obviously we don't want merchants to know that because Ive seen them used and it gets ugly but more often than not a funder will have to weigh up the time that executing a COJ and trying to take it to its full extent versus, getting back on the bull and being more diligent with their underwriting next time. Crack eggs make omelets!

[John Galt]

This is actually a few years old. http://www.greensheet.com/emagazine....0602&ad_id=143

[Chambo]

I am 3 blocks, they are probably a floor apart...

Andy and I sit 20-25 feet apart form each other. At least I can close the door though

[AndyYSCISOdept]

Andy and I sit 20-25 feet apart form each other. At least I can close the door though

I keep the door to my office closed too, see this is where the Mr Grumpy comments come from

[AndyYSCISOdept]

This is actually a few years old. http://www.greensheet.com/emagazine....0602&ad_id=143

Decent article, but at 3 years old a lot has happened since then, and A LOT HASNT happened as well. Both of which are equally telling as to the direction the industry is headed as far as litigation is considered.

[FUNd]

Had no idea Chambo worked for YSC.

[Kevin Henry-Seacoast]

Chambo grumpy-no realistic-um...yes. Perception vs. Reality.... Reality wins every time.

[AndyYSCISOdept]

Chambo grumpy-no realistic-um...yes. Perception vs. Reality.... Reality wins every time.

I been working with him every day for 7 years, you can call it what you want. But I learned this business from him and give him all the credit due in teaching me the right way to do things which is a big part of my success.

[FUNd]

I been working with him every day for 7 years, you can call it what you want. But I learned this business from him and give him all the credit due in teaching me the right way to do things which is a big part of my success.

So what you are saying Andy is that, Chambo knows...?

[AndyYSCISOdept]

So what you are saying Andy is that, Chambo knows...?

Guess I walked right into that huh?

[FUNd]

You sure did buddy.

[Jstarr]

we have several people that we syndicate with try to use these and they are Non enforceable in Florida - our attorney chuckles every time he sees one.

[John Galt]

Was meant as an analogy......most of these contracts truly are unenforceable. But since a lot of the merchants do not have the means anyway to hire attorneys, they end up in a default. Who cares if you have a default judgement but can't collect it? That is why we are in the business and price accordingly.

[Zach]

COJ certainly helps as a scare tactic for many merchants.

[AndyYSCISOdept]

COJ certainly helps as a scare tactic for many merchants.

The biggest issue is that you have funders trying to enforce them on merchants that don't have a pot to piss in or a window to throw it out of. A Lot of the need for COJs can be eliminated with more diligent underwriting and making sure that the money given to the merchant is going to help not hurt.

[GoodCustomerService]

LOL Andy. Did you drink your happy juice today?