[Scott Williams]

Sean, the basic problem with stacking is not that it's an additional funding source. The problem is that it's very often a breach of the merchant's agreement with the original funder. That is where this gets hairy. There are serious legal concerns that come into play when you knowingly induce someone to breach a contract.

I have seen stacking going on since I entered this space in 2007 (well maybe 2008 is the first time I saw it). Yes, its definitely at the highest level now. The merchant is breaching the original funders contract but I assume the original funders contract would not hold up in court. Why hasn't a funder won a court case against a stacking funder by now? 7+ years of stacking and there hasn't even been a funder win a court case against a stacking funder.
I know all of the big funders have great legal teams. I assume their legal teams have advised them to not move forward with legal action since they think they wouldn't win the case.