[Sean Cash]

If that happens and our customers realize they can get funded with ease & just as fast at their local bank who adheres strictly to the usury laws. Well then we can all kiss a good portion of our A Grade paper goodbye.

The alternative lenders who service A paper deals now adhere strictly to the usury laws too. "Lenders" such as OnDeck rely on actual chartered banks to issue the loans. OnDeck buys those loans immediately. This allows them to usurp state usury laws in the same way that all credit cards are able to and it's not very controversial. The National Bank Act and another similar federal law grant these powers. Alternative lenders who use the bank charter model have already been adhering in a strict sense. The only thing that possibly stands in the way of that is the very recent Madden v. Midland decision and what, if any consequences of that are yet to be determined.

And then there are lenders who are members right here on this very forum that don't use a chartered bank to issue the loans but actually comply with the laws of each individual state. Some will require formal licenses and others don't. These lenders too are already strictly adhering to usury laws.

Lastly, there are companies on here that strictly buy future receivables who are not lenders and should never be referred to as such. If they know how to properly run their business and vet their contracts, then they too adhere to usury laws.

I'm not talking to you specifically KTK at all, just using this as an opportunity to bring up something I've noticed with other people I've talked to. If you are reselling any kind of funding product, at the very basic fundamental level, you need to know what it is (loan or purchase) and all of the legality behind it.

If a merchant asks you how it's possible to lend at 30% APR in NY state for example, you better:
1. Make sure the product you're proposing is indeed a loan
2. Make sure the product you're proposing can be sold there
3. Make sure the company backing it is legally allowed to and understand how they do it

If it's not a loan, you better know the perfect answer as to why not and broker deals only for a funder whose contracts have been properly legally vetted. You bear some responsibility as a professional to perform due diligence on the funding company you're brokering for. It's not just all about how many points they will pay you.

You might be on the hook civilly or criminally if you say the wrong things or you broker a product in a state where you shouldn't have.

Merchants are recording their phone calls with you. Debt settlement companies and lawyers are telling them to watch what you do and to save what you email them. And if you do it wrong, not only could the funding company or ISO get in trouble, but there have already been lawsuits filed where the individual sales rep and the underwriter working for the funder have been sued for all sorts of claims.

If you don't fully understand the legal implications of your job or the products and their myriad nuances, ask your boss for a training on these materials. If they don't know the answers, work somewhere else.

One of the attractive parts about this industry is that you don't need to be licensed to sell the products. That doesn't mean there are no laws or that absent a license, you can't be held responsible if you don't follow established state and federal laws.

Some of you might feel like an insignificant dude or dudette in an industry full of thousands of more important or higher income earning people. I know what it's like to sit in a room dialing all day. The good news is that you are actually very important and that everything that you say and do matter very much. With no government licenses required, it's up to you to become the expert you are still required to be.