[RogueCaliISO]

Recently received a call on my sideline number that I usually put on my applications when submitting to lenders...

The guy had a very strong pitch about how I should stop paying my MCA balances, switch bank accounts, and have his company negotiate 50% off what I currently owe...

Looks like the industry is going to start cannibalizing itself this year...

Talked to my lead guy.... said he is selling every piece of aged data that he has to a 35 person call center in NY that is doing unsecured business debt settlement.....

[MCNetwork]

I would think it's mostly the C and D paper merchants that are paying high rates who would be swayed by this pitch. The A and B guys that pay competitive rates and use the advances in a responsible manner have no reason to burn their bridges with their funders.

[HDF]

I would think it's mostly the C and D paper merchants that are paying high rates who would be swayed by this pitch. The A and B guys that pay competitive rates and use the advances in a responsible manner have no reason to burn their bridges with their funders.

And poor souls with no training, no budget, and no leads making their exit from the business. Milking a book for a few extra bucks.

Anyone who thinks that setting up a sales floor to call out on this endeavor is very shortsighted and better have the legal side of things on complete lockdown. And, of course, expect to be regulated like everyone else - meaning that encouraging breaking contracts etc. will be a big red alert for cleanup.

[Karen37a]

I agree with Mcn and Hdf but the only thing to add is , these debt settlement companies have been around since the dawn of ages they are just making their way to the merchant cash advance arena.

Their is legitimate debt settlement, not what he described.But again, this type of strategy ( unethically coaching clients to default ) has been around forever, some of it is ethical and true (very very very small %)..

Its called Loan Modifications in the Mortgage space; very very very small % of lawyers also coaching into bankruptcy

Some brokers, myself included, jumped ship right before the mortgage industry crashed right into Foreclosure defence. I saw many competitors go out in handcuffs for the shady things they were doing.

I also get to hear the venomous comments coming from the merchants who have been stacked 5 ,6 wide and how they blame the broker for everything. Me saying " you are the one who spent the money, it didn't just land in your bank account and if it did you should have just sent it back" Ive told the clients to stop listening to those people and call the lender and pay the money back, it wasn't even my sale or merchant, and they did pay it back. I heard it at least 10 times over the last few months so I cant imagine how many people are attempting to do it or hear it.

I know most of these lenders are not going to budge on negotiations either

Folk lore says that if you back a rat in the corner it goes for your throat...Ive never tried it so dont know if its true ..had a snake, shark, tiger, rabid dog though ( half kidding )