ComplaintsforGood Funding

• Initial Complaint

  08/30/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  In June 2022, I contacted a company named ******. They connect lenders with small business owners who lack sufficient credit history or business tax reports for traditional loans. Initially, I was introduced to a lender called Good Funding, who supposedly wouldn't conduct credit checks for approval. They offered a "purchase on receipts" arrangement, where 19% of our weekly sales would go towards repaying a $****** loan. However, the contract ended up stating $******, with fixed payments of $****** per week. Despite the disparity from what I was initially informed, I tried to manage the payments and even requested lower amounts, which were agreed upon for a few months. Out of nowhere, one of the owners, ***** ******** declared he wanted the remaining $***** paid immediately and threatened legal action if I couldn't comply (June 2023). This demand was confusing since I had started with a reduced payment plan. I confronted ***** and his co-partner, *******, but was met with legal threats. Reflecting on my interactions with ******, I realized their promise of no credit involvement was false. When Good Funding requested additional information and contracts outside of ******, I should have been more cautious. It became apparent that both ****** and Good Funding were predatory lenders. Unfortunately, due to this situation, I'm forced to file for personal and business bankruptcy. I'm constantly contacted by ********* ******* from the Law Office of ****** *******, who threatens a UCC1 lien against my personal credit. They hold power through a contract I signed, misled by their predatory lending tactics. Their threats now extend to serving and suing me personally. A word of caution to small business owners and individuals: Beware of Good Funding, ***** *******, his associates, and ******.

  

  Business response

  09/01/2023

  Ms. *********** description of her interactions with our company and the servicing of her Agreement is not only inaccurate, but libelous. We value our customers and work diligently to accommodate them when they experience fluctuations in their business – as was the case here.
  
  Over the past 14 months, our team has been reasonable, professional, and flexible – as evidenced by the communications we have attached. Though there were several material breaches of her Agreement with us, we continued to offer support and make accommodations to help her work through the challenges she faced. During multiple conversations, she failed to acknowledge the main tenet of her Agreement with Good Funding: we provided revenue-based financing and she agreed to deliver back a percentage of her future sales. When those sales dipped, we lowered the deliverable amount. When her sales increased, she refused to adjust back up. After months of non-compliance with her Agreement, we made a good faith offer to greatly reduce the amount owed to us in her Agreement and settle for $*****.
  
  We are deeply sympathetic to Ms. *********** situation. We never wish to see a customer’s business suffer, nor do we actively seek to be the cause of ruin. Characterizing our business and servicing as predatory and misleading is a dangerous attempt by Ms. ********* to avoid responsibility.

  Description of Emails
  Email 1 – The most recent exchange our VP of Portfolio Servicing had at the end of July with the customer who still appeared willing to engage – but no forward action on her part
  Email 2 – Example of the tone of the exchange with the customer – our continued effort to support/her unwillingness to recognize what is actually occurring
  Email 3 – Reconciliation Review – sales up…her refusal to acknowledge the base tenet of the program
  Email 4 – Our presentation of a discounted settlement following numerous breaches of Agreement
  Email 5 – Communication following our offer of a discounted settlement

  

  Business response

  09/28/2023

  To start, please accept our apologies for the misspelling. We appreciate the opportunity to further clarify this situation.

  We take every complaint very seriously. In this case, prior to posting our first response, we thoroughly examined the account history as well as the interactions between her and Good Funding representatives. We firmly believe our interactions, accommodations, and servicing were done professionally and in good faith. The settlement we offered was also in good faith.

  We roundly denounce Ms. *********** accusations that we are a predatory lender and that we mishandled her account. There were no inconsistencies between what is stated in her Agreement and what transpired when she had fluctuating sales. We do all in our power to make adjustments when customers face challenges, but that requires an open, ongoing dialogue between us and the customer. When it became clear Ms. Hollowell was not going to cooperate with our attempts to be flexible, we offered a settlement amount that was deeply discounted from the contractual amount in her Agreement. At this point, there was a communication breakdown. Per company policy, we then sent the account to an outside agency to continue collections efforts.

  Despite all that has transpired, we are eager and willing to continue the conversation directly to come to a reasonable solution.
  
  Description of Attachment
  Email 1 – The most recent exchange our VP of Portfolio Servicing had at the end of July with the customer who still appeared willing to engage – but no forward action on her part
  Email 2 – Example of the tone of the exchange with the customer – our continued effort to support/her unwillingness to recognize what is actually occurring
  Email 3 – Reconciliation Review – sales up…her refusal to acknowledge the base tenet of the program
  Email 4 – Our presentation of a discounted settlement following numerous breaches of Agreement
  Email 5 – Communication following our offer of a discounted settlement

  Customer response

  10/06/2023

  I appreciate your response and effort to address my initial complaint. However, I'd like to provide additional context:
  
  1. Misspelling: Thank you for acknowledging the misspelling of my name; attention to detail is crucial.
  2. Complaints and Settlement Offer: My intent in sharing my experiences wasn't baseless accusations but to highlight concerns I deemed valid. While you describe your interactions as professional and in good faith, my perspective differs. The settlement, though appreciated, was unattainable due to my financial situation and initial agreement terms.
  3. Communication Breakdown: A significant communication breakdown occurred. I attempted to engage and communicate, as evidenced by attached emails. My concerns regarding agreement terms and disparities were raised before the discounted settlement offer.
  4. Predatory Lender Accusations: I respect your denial of being predatory lenders. However, my perception is based on my experiences and disparities during our interactions. I've also attached evidence of refinancing deception by Lendzi on your behalf.
  5. Open Dialogue: I agree on the importance of open dialogue, but my attempts were met with frustration, exacerbating the situation.
  6. Clarification: You mentioned sending the account to an outside agency and placed a UCC lien on my business credit (see attached). If this is inaccurate or if lawyers are not involved, clarification is needed. This issue must be resolved.
  
  I'm open to a reasonable solution and constructive dialogue to reach a fair resolution for both parties involved.

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