[CO1]

Look at the email- something must be done! Where is SBFA when you need them?! An there suppose to be the God-Fathers of the Industry! I am calling out all the big boys to unite at least on this notion!!!

I get calls more and more everyday than so called - "Funders" for this bull****!

Wake up people- let's do something!

What's most shocking is -

1- Past Cash advance sellers in this bag!
2- Brokers an ISO playing both sides of the fence!
3-Lead Generators!

Simply-

Pathetic.

[isaacdstern]

I put together a meeting at my office a few weeks ago to discuss what we are doing about this major problem. If anyone wants more info or wants to get involved call me.

Isaac
917-743-8369

[SBF]

Disturbing indeed! I too know of an ISO developer that crossed over to these weasels. I have received a few calls asking me for any stacked/over-leveraged merchants (as if!)... I promptly told them we are owned by an attorney...and would never think of turning any files over them.

[Michael I]

i can not believe that there is not news of an iso shop black listed , sued etc . for doing these type of things

[J.Celifarco]

unbelievable... I think the best part is the email address, @stopdailypayments.com

this is going to become a huge problem if these companies are not stopped now, early, before they become a fixture in this industry

[HDF]

Widespread stacking aside for a moment.

The big rub and battle should become the merchants that are not really in financial distress at all - but encouraged to get out of remitting by shady ISOs and these slimeballs' "nationwide attorney network".

[J.Celifarco]

^^^^^^^^^^what he said^^^^^^^^^^^^

[RickyR3712]

I spoke with someone a while back and they told me that they did something like corporate turn around. The first position lender hit them up on the personal credit and stopped him from being able to buy a house(credit score was 700).The second position they paid what they borrowed back in one big payment. The third position while they were negotiating filed the coj and took the money straight from his clients based on the ar (got paid full payback amount) Now he has a judgment from the corporate turnaround type company for 20k for quote unquote helping him, lost clients that got nervous with the whole lender coming after them for money thing. Worst part as hdf mentioned is he was doing fine with the 3 payments before the salesman called him and told him he can half his payments due to some new law.He tried calling the lenders to just get back on track and all said to late.

[WestCoastFunding]

Funded a merchant about a year ago. Hadn't heard from him until few weeks ago. Calls me out of the blue and tells me that he stacked a couple more advances and couldn't make his debt obligations. Then he tells me (with some pride) that he worked with one of these companies to cut his debt. When I say that he said it with pride, it was like "isn't this an awesome deal I got?".

Anyway, he then says to me, "I'm ready to take on another advance."

It became apparent to me that whoever sold him on this debt restructuring bull**** must have told him he'd get another advance. I told him no one will ever touch him again and he seemed shocked. He was like "but I really need this." These people are coached-up and given poison pill advice.

[Karen37a]

They are guaranteeing the debt restructuring , they posted it on the daily funder numerous times, that alone is illegal or out of compliance. .Its illegal to Guarantee. Most lenders/Funders will not negotiate with 3rd parties. No one can guarantee the outcomes
.
They are regulated under FTC rules and the FTC placed a limitation on costs and fees charged up front( no front loading)..All monies must be placed in an dedicated account or escrow account, not to be touched unless they see some results. e.g. the client making one payment on debt or loan forbearance or workout plans that are agreed to on both ends ;the client can withdraw the monies at anytime for any reason and.you must return the monies if there are no results...They must have a system to set up the escrow accounts .Unless you are an Attorney. Most of these companies do not set up escrows, they are living off the money.

Numerous disclosures must be sent upfront ..example ...the tax consequences of a write off and deficiency judgement, also impacts to credit scores, future ability to borrow, effects of bad credit on everything including costs of insurance, future loans etc.

They are regulated by the FTC, Atty general, state laws.These companies almost always wind up being sued, the agents/brokers that placed business with them sued as well, and also the brokers wind up never getting paid for referrals. Many of these firms go out in handcuffs, bank accounts seized etc.They still gave very bad advice to clients and caused destruction.

My knowledge comes from my experience with traditional loans/law firms.( and check to make sure I am right**) I would think the same applies for debt as future receivables or cash advances.

[fisheMS]

this same technique scammed tens, if not hundreds of thousands of people into foreclosure 2007-on, the idea that there's meaningful regulation or enforcement for "debt relief" scams is....debatable.

[Karen37a]

With Foreclosures there were legitimate was to restructure with Dual Tracking laws that were put into place and Mars compliant escrow accounts.BUT you are still not supposed to coach someone who is solvent into committing fraud by skipping out on a loan simply because you went "upside down" or dont
feel like paying. Which is what a lot of people were doing.

These companies are coaching people into insolvency with promises of a short term strategy (which isnt true), that can be handled very quickly thru the leverage of the threat of non payment. Its considered a "strategic default" and some people will argue the fact that you put yourself and your family's financial health first.

The questions to ask is...what is their current Financial Condition and has it materially changed from when they took out the first loans or advances? Or is the financial condition the same and the person is just trying to evade paying an debt obligation after the fact?

[BrennanCapitalPartners]

Isaac,
I would love to hear more on the subject.

[BrennanCapitalPartners]

I have came across this before with some stand-up clients who truly make money with the advances then become shocked when I have no choice but to say there's not much we can do at this point sorry... Shame on them, let our clients know the truth!

[CO1]

Only 13 replies! You all should be ashamed of yourselves! And 527 views! Really? This is how you guys react to an industry interruption that can change the landscape forever!! This shows no loyalty from anyone! Just Pathetic on your end guys and girls!

P.S.
Thank you Isaac!

[fma123]

Isaac, you're a big player in this game. How do we stop this, it is a problem...cant something be written in the contract or add an addendum where merchants are not allowed to speak to these disruptors in the space?

Also it should be our job now right before a deal funds to warn merchants about these companies. lets face it there will be no law to stop these debt relief chumps.

[BrennanCapitalPartners]

Isaac, you're a big player in this game. How do we stop this, it is a problem...cant something be written in the contract or add an addendum where merchants are not allowed to speak to these disruptors in the space?

Also it should be our job now right before a deal funds to warn merchants about these companies. lets face it there will be no law to stop these debt relief chumps.

I speak on this matter with all my clients, especially if they have two or more positions. I even go as far as to tell them it is bettter to wait and pay down a position if it's going to hurt them to take another. If you think about it , an ISO/Lender can easily figure this out with simple math and avoid the growing of said debt relief companies. I believe we are creating them with excessive stacking. If we can find none traditional sources for finding our clients, we can avoid over stacking ( hence creating a need for these companies ).How many small businesses are there? In 2010 there were 27.9 million small businesses, and 18,500 firms with 500
employees or more. Over three-quarters of small businesses were nonemployers; this number has trended up over the past decade. We need not to be sharks chewing on the same dead whale. We as ISOs/Hybrids are hurting our lenders with excessive stacking, creating high sell rates and bringing bad publicity to our market. There is a better way! Instead of ISOs/Lenders who are great contributors to our industry closing doors, let's make them feel the same sting.

[isaacdstern]

I'm not going to post our game plan on the forum but again anyone that wants to get involved in the upcoming battle against the debt settlement Companys that are not playing kosher ball reach out to me.

Isaac
917-743-8369