[Michael I]

yeah very confused here , just take an example of 100k 12 month 1.3 technically it is a 54% apr but with the clause of sales dropping and what is happening now ,so the deal takes you 18 months dropping the apr to 36% and just keep taking the out further and further. so are you just going to write apr from 4-54% .If anything this will make it more deceiving to merchant. What am i missing?

[ryan $]

yeah very confused here , just take an example of 100k 12 month 1.3 technically it is a 54% apr but with the clause of sales dropping and what is happening now ,so the deal takes you 18 months dropping the apr to 36% and just keep taking the out further and further. so are you just going to write apr from 4-54% .If anything this will make it more deceiving to merchant. What am i missing?

exactly.

What if it is a CC Split? "Guessed APR"

[Yankeeman07]

exactly.

What if it is a CC Split? "Guessed APR"

Technically yes since there is not a definitive term - there is an expected turn based upon past performance,
not a guarantee of future performance.

It is a meaningless Law passed by uniformed politicians

[SFC]

Technically yes since there is not a definitive term - there is an expected turn based upon past performance,
not a guarantee of future performance.

It is a meaningless Law passed by uniformed politicians

I wouldn't say meaningless. The real "point" of this law is to give make MCA look bad.

Most people don't understand factor rates.

When media/politicians start seeing contracts that say 50-500% APR that's when all hell will start to break loose.

That's the real goal here. Put MCA in terms that don't apply to it to harm the industry.