[Funder Mark]

So when are public lawsuits against the stackers going to arrive?

[Chambo]

So when are public lawsuits against the stackers going to arrive?

They are already going on, they just aren't being advertised. Sean can confirm that several stacking firms have had to whip out their checkbooks already.

I guess they just feel it is the cost of doing business, or they just decide to NOT stack that particular company.

[jbrown]

Rapid currently has 3 open lawsuits for tortious interference against different companies that have stacked on us and caused a loss. I can't speak for other companies and what they have done. CreditGuy has a good analysis of some of the issues and contractual rights.

These cases are all fact specific and are working their way through the courts. In our first case, against one of the companies that specifically advertises that they do 2nds, 3rds etc., the defendant filed a motion to dismiss and we recently had a ruling in our favor allowing the case to proceed. Which means we get to do discovery, take depositions, etc.

There is also significant regulatory awareness of the stacking issue in particular. Some of you know that SBFA is now active on Capitol Hill and has hired an Executive Director who comes from a leadership role on the House Committee on Small Business. Our legal department is also active on the Hill and has testified at the Federal Reserve on issues related to our industry.

[J.Celifarco]

Rapid currently has 3 open lawsuits for tortious interference against different companies that have stacked on us and caused a loss. I can't speak for other companies and what they have done. CreditGuy has a good analysis of some of the issues and contractual rights.

These cases are all fact specific and are working their way through the courts. In our first case, against one of the companies that specifically advertises that they do 2nds, 3rds etc., the defendant filed a motion to dismiss and we recently had a ruling in our favor allowing the case to proceed. Which means we get to do discovery, take depositions, etc.

There is also significant regulatory awareness of the stacking issue in particular. Some of you know that SBFA is now active on Capitol Hill and has hired an Executive Director who comes from a leadership role on the House Committee on Small Business. Our legal department is also active on the Hill and has testified at the Federal Reserve on issues related to our industry.

well that pretty much sums it up for anyone who thinks the bigger companies in the industry are sitting back doing nothing. I doubt these are the only cases I am sure some of the other bigger banks have files suits as well

[mcaguru]

Rapid currently has 3 open lawsuits for tortious interference against different companies that have stacked on us and caused a loss. I can't speak for other companies and what they have done. CreditGuy has a good analysis of some of the issues and contractual rights.

These cases are all fact specific and are working their way through the courts. In our first case, against one of the companies that specifically advertises that they do 2nds, 3rds etc., the defendant filed a motion to dismiss and we recently had a ruling in our favor allowing the case to proceed. Which means we get to do discovery, take depositions, etc.

There is also significant regulatory awareness of the stacking issue in particular. Some of you know that SBFA is now active on Capitol Hill and has hired an Executive Director who comes from a leadership role on the House Committee on Small Business. Our legal department is also active on the Hill and has testified at the Federal Reserve on issues related to our industry.

Ye I hear you. Capital hill at times is a good route and we use that for family healthcare ventures, for our industry the guys at capital hill look at a 1.18-1.30 factor rates as punching the merchant in the gutt. MCA/ACH is very helpful but congressman hear 20-30% payback and the most conservative MCA Group can look like hard money. (these are a group of people that anything over bank rates is excessive).

[J.Celifarco]

Ye I hear you. Capital hill at times is a good route and we use that for family healthcare ventures, for our industry the guys at capital hill look at a 1.18-1.30 factor rates as punching the merchant in the gutt. MCA/ACH is very helpful but congressman hear 20-30% payback and the most conservative MCA Group can look like hard money. (these are a group of people that anything over bank rates is excessive).

HUH? What does this have to do with the stacking law suits???

[mcaguru]

HUH? What does this have to do with the stacking law suits???

I saw the Capital Hill stuff and pointed out that these guys can be educated on 2nd position funders and they might be hold your horses why don't you tell us about the 1st position (now of course they may not ask the questions about 1st positions in front of Mr Brown!!) and then when they hear about 1st position 1.25 rate and feels its way to aggressive and uncle charlie went under for taking a 1.18 they come after us all ..

[J.Celifarco]

I saw the Capital Hill stuff and pointed out that these guys can be educated on 2nd position funders and they might be hold your horses why don't you tell us about the 1st position (now of course they may not ask the questions about 1st positions in front of Mr Brown!!) and then when they hear about 1st position 1.25 rate and feels its way to aggressive and uncle charlie went under for taking a 1.18 they come after us all ..

1st position MCA's have already been run though the courts they dont have worry in anyway close to how the second position and deeper will.

[mcaguru]

1st position MCA's have already been run though the courts they dont have worry in anyway close to how the second position and deeper will.

Anytime your giving capital above banking rates with a pro-regulation administration one can be worried. (since you use the worry term) and lets not even go down the path when the smartest business economic professor at Georgetown Universality proves that its the 1st position funding house that causes 100% the merchant to need a 2nd position?? (yep a professor is on it sadly) what happens then??!!!