[Kevin Henry-Seacoast]

What's the whole point of the contract then? And all the legal verbiage in the event a merchant defaults? The contract itself should hold up in court, even against real fraudsters. The real benefit the COJ gave was the timing it took to recoup the money

Unfortunately regulators felt is was being abused. COJ required funders were executing the COJ when companies were not actually in default and in some cases seizing assets will above what was owed....not by a little.....A LOT. Some felt that the users of COJs were using them as a tool to grab funds from good customers that barely defaulted over and above what was owed to cover losses with customers that never paid back.