[admin]

General Counsel of CAN Capital is among the witnesses testifying

[Michael I]

sean cliff notes version please

[nrh1lp]

everyone is asking them to disclose APR's on advances without any understanding as to why that question is irrelevant

[Jonathon]

They didnt seem to happy with the answers CAN was giving

[bdshaw]

APR's are not irrelevant to people who,only understand loans. The industry will play he'll trying to convince regulators and burocrats the the MCA product is something other than a loan.
If someone receives money and has to pay back more than they borrowed its a loan.
The subtilty of purchasing future receivables may fly with a judge but not these folks.
If the CAN CFO did not give them any interest rates I be% they are now suspicious of what rates are being charged.
Bob

[BankComplianceGuy]

everyone is asking them to disclose APR's on advances without any understanding as to why that question is irrelevant

CAN is the only company up there that offers MCA, and they also have loans. The guy also mentioned the ILA, which is CAN, Kabbage and OnDeck, lenders.

[BankComplianceGuy]

APR's are not irrelevant to people who,only understand loans. The industry will play he'll trying to convince regulators and burocrats the the MCA product is something other than a loan.
If someone receives money and has to pay back more than they borrowed its a loan.
The subtilty of purchasing future receivables may fly with a judge but not these folks.
If the CAN CFO did not give them any interest rates I be% they are now suspicious of what rates are being charged.
Bob

Exactly Bob, here's what people who have never heard of CAN are learning - 1) one of their products is a "sale of future receivables" that doesn't technically have an interest rate, but is expensive. 2) for their loan product, they leverage a Utah industrial bank to originate the loan so they can preempt usury laws. oh and 2a) we really like this set-up and wouldn't really welcome a limited charter that would bring additional oversight to us.

[Sean Cash]

They didnt seem to happy with the answers CAN was giving

For the record in case anyone was wondering. CAN Capital volunteered to be a witness here, they weren't subpoenaed or something. A hearing like this is meant to be informative and constructive, a chance to dialogue on the public record with policymakers but also field the tough questions.

[AlexSMF]

For the record in case anyone was wondering. CAN Capital volunteered to be a witness here, they weren't subpoenaed or something. A hearing like this is meant to be informative and constructive, a chance to dialogue on the public record with policymakers but also field the tough questions.

Was anyone going to read the letter that the credit union association submitted for "official record" at the end there? I can imagine what it said but a bit of an off ending there.

[bdshaw]

I have some experience with regulators and suspect the questions will get tougher.
Bob