[mcashark]

http://www.heraldnews.com/news/20170...loan-practices are the days of going thru chatter banks over for this industry?

[WestCoastFunding]

"ABC filed for bankruptcy protection in May 2016, claiming that it owed $30 million to more than 300 creditors."

And they will still make an attempt to get another advance.

[ADiamond]

love how they act like it was predatory lending but the client knew what they were getting into. now their concern is the creditor was BOFI, not SBTL?

300 creditors... these people are professional scam artists. it's a shame companies like bfs have to be subjected to b.s. such as this.

[mcaguru]

Agree

[CreditGuy]

300 creditors...

I doubt they had 300 actual loans/advances. The reporter probably just pulled the BK filing and counted the named creditors, which includes their utility companies, suppliers, and anyone else they owed money to on terms as a "creditor".

[Chambo]

love how they act like it was predatory lending but the client knew what they were getting into. now their concern is the creditor was BOFI, not SBTL?

300 creditors... these people are professional scam artists. it's a shame companies like bfs have to be subjected to b.s. such as this.

As long as the courts don't see it differently. Remember, we are all supposed to have a fiduciary responsibility to these merchants. If the courts deem that so, and it was violated? Well, there is now a court precedent against ALL cash advances

[funding pro]

As long as the courts don't see it differently. Remember, we are all supposed to have a fiduciary responsibility to these merchants. If the courts deem that so, and it was violated? Well, there is now a court precedent against ALL cash advances

If it was on their loan product which would make sense since they are specifically citing BOFI, then this would not be precedent for any cash advances.

[MCAVeteran]

Similar situation happened in past with Lending Club and Web Bank. The general public/business owners don't understand the connection with funders and the charter banks. This would be for loans not mcas. web bank and B of I are used for loans/fixed dailys achs

http://debanked.com/2016/04/webbank-...-class-action/

[Sean Cash]

If it was on their loan product which would make sense since they are specifically citing BOFI, then this would not be precedent for any cash advances.

This is basically how all the fintech "lenders" conduct their business including Lending Club, Prosper, OnDeck etc. A chartered bank makes a loan, the fintech companies buys the loan and services it. It's how credit card companies work too. This is a dumb lawsuit

[MCAVeteran]

The business owners or consumers attorneys are taking a position that if the loan is sold back to funder and doesn't remain at the bank, state law applies and violates usury. This happen to Prosper as well through Web Bank. Consumer lending and Business lending have different laws, but, the positon still seems to be if the banks aren't actually originating the loans, servicing the loans, maintaining accounts with customers, its a pass thru and when sold back state law would apply. We will prob see more of this imo

[WestCoastFunding]

The business owners or consumers attorneys are taking a position that if the loan is sold back to funder and doesn't remain at the bank, state law applies and violates usury. This happen to Prosper as well through Web Bank. Consumer lending and Business lending have different laws, but, the positon still seems to be if the banks aren't actually originating the loans, servicing the loans, maintaining accounts with customers, its a pass thru and when sold back state law would apply. We will prob see more of this imo

Are they selling it back, or just selling it?