[CreditGuy]

The issue with sending people to jail for this is that what're you going to charge them with?? And furthermore, what DA is going to take a case like that?

Wire fraud. It won't be a DA, it will be an ambitious AUSA given it will be interstate commerce. They will do it to make an example of the industry.

There are so many shady things going on in this space, not just the disclosed junk fees. We see altered contracts all the time. The ISO has the borrower sign one version of the loan docs and then submits a second version with a higher rate to the funder with a forged signature from the first. Or, they lift the ACH info from the funder's contracts and use it to debit the merchants account for a undisclosed junk fee. I've also seen ISOs sign contracts on the borrower's behalf, let the loan fund, and then ACH the proceeds. Once the debits start rolling in the merchants call us and say they never signed a thing.

Those are just the one's that really only impact the merchant. I've also seen plenty of ISOs pull all manner of shenanigans on lender's they work with, like stacking multiple advances at closing from different funders, or stacking their own second funded partially with the commission paid by the funder.

I've seen almost every gimmick you can imagine, and there are probably some I can't imagine that I'm yet to see.