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12-16-2016, 05:35 PM #1
Reputation points: 1336
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ISO Shop That Closed
Unless you received a notice of termination from the broker and a waiver on the commissions due or you have sent a notice of termination to the broker, you are probably required to pay them as set forth in the agreement. You should also probably know your agreements inside and out. Even if you terminate the agreement, any pending commissions may still be due depending on the provisions within your agreement. Again, you should probably know your agreement inside and out.
Unless the agreement has been terminated and it specifically states that all commissions pending are no longer payable, you need to send the commissions to the bank account on file.
If they are rejected you then need to hold the commissions. If there is not a provision in your agreement that governs rejected ACH's for the payment of commissions, you should probably wait a reasonable amount of time before you consider them non-payable. A minimum of 90 days is what I would consider reasonable. You also need to make a good faith effort to contact this person. A good-faith effort is at least a couple phone calls to all phone numbers on file and at least two emails.
Note - in the event this broker calls you in six months you should still probably pay the commissions to them at that point. If you make money off of the deal they should too, regardless of how long it takes for them to contact you.
Think about it this way, when you purchase the receivables from a merchant but they default, do you stop trying to collect because they don't pick up the phone? If they called you six months later and said you could start your ACH collections again, you would, right?
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12-19-2016, 08:48 AM #2
Reputation points: 2496
- Join Date
- Nov 2014
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- NYC
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Thank you all for the kind words!
David Obstfeld
Chief Executive Officer
SOS Capital
1330 Ave of the Americas, NY, NY 10019
212-235-5455
SOSCapital.com
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