1 00:00:03.240 --> 00:00:10.260 Sean Murray: Hello, everyone, welcome back to deBanked TV. I'm Sean Murray. Today we have three quick topics that I want to talk about. One 2 00:00:10.260 --> 00:00:19.140 of them is definitely edgy, you might say. It's something that was sent to me this morning, I have been a big advocate of differentiating 3 00:00:19.140 --> 00:00:26.610 yourself with your marketing, kind of going against what the crowd is doing, making sure that you stand out. And it looks like someone has 4 00:00:26.610 --> 00:00:34.890 taken that to an extreme measure. I don't know if you are familiar or have watched the Netflix series Tiger King. But someone thought it was a 5 00:00:34.890 --> 00:00:46.680 good idea to involve Carole Baskin and her past with a banker into a marketing pitch. This is a real a real thing. It's a video video 6 00:00:46.680 --> 00:00:57.030 commercial that Carole Baskin is advertising online, or I guess the company that hired her is advertising online. And this is real. It's part of 7 00:00:57.390 --> 00:01:02.100 what's being advertised in FinTech. Right now Carole Baskin is coming to you live. Let's take a look. 8 00:01:03.240 --> 00:01:09.600 Video: Hey, all you cool cats and kittens in the banking industry. It's Carole Baskin from Big Cat Rescue. You might remember from Tiger 9 00:01:09.600 --> 00:01:11.940 King, I'm married to a former banker. 10 00:01:15.680 --> 00:01:24.470 Sean Murray: Okay. The full, the full video is actually about 48 seconds. And she goes on to explain that banking is changing. And she 11 00:01:24.470 --> 00:01:32.480 knows all about banking, because her former husband was a banker, and that there's a report that you can download to learn more about how to 12 00:01:32.480 --> 00:01:39.080 reform banking. So there's a real company behind it, it's not a prank, we'll actually include the link to the company that made the 13 00:01:39.080 --> 00:01:46.910 video up on the site afterwards, so you can actually download the report. So Carole Baskin is apparently getting into banking and FinTech 14 00:01:46.910 --> 00:01:52.730 or at least being the marketing person, so learn something new every day. I don't know how it will work out for them, but I guess I'm talking 15 00:01:52.730 --> 00:02:01.220 about it. So it's something. I also want to talk about a new bill that was proposed in North Carolina, it just got submitted yesterday. We have 16 00:02:01.220 --> 00:02:09.290 talked a lot about commercial financing disclosures in states like California, New York, Maryland, there was one recently that came out in 17 00:02:09.290 --> 00:02:15.890 Connecticut, although I'm not entirely sure if that has moved forward. But we're now seeing the exact same bill reared its head again, this 18 00:02:15.890 --> 00:02:22.550 time in North Carolina. So there is a commercial financing disclosure bill in North Carolina. It looks very similar to bills that have been 19 00:02:22.550 --> 00:02:30.950 proposed in other states. It's got all the same language. Gotta disclose an APR, it includes factoring includes merchant cash advance, it 20 00:02:30.950 --> 00:02:38.240 includes business loans, it exempts banks, the only thing different about this bill versus some of the others is that it does not include 21 00:02:38.240 --> 00:02:44.870 the term double dipping, but all the rest of it is in there. They want these providers of small business finance of commercial finance to 22 00:02:44.870 --> 00:02:52.400 report to the state banking Commissioner. And this doesn't mean it's going to become the law. It's just a proposed bill at this point that 23 00:02:52.400 --> 00:02:59.840 was submitted literally yesterday on May 11. So stay tuned, though it's up on our site on our homepage, you can learn more about- we have the 24 00:02:59.840 --> 00:03:09.320 full bill link to in the in the article on our site, learn more about what's going on in North Carolina. Lastly, I want to talk about what has 25 00:03:09.320 --> 00:03:19.850 happened with the FTC since they lost their power to seek restitution under Section 13(b) of the FTC act. If you've been following along, you 26 00:03:19.850 --> 00:03:28.010 may recall that the FTC recently suffered a huge blow, and that they cannot go after you for all these damages under Section 13(b), which is 27 00:03:28.010 --> 00:03:35.120 what they kind of use all the time when they're pursuing, you know, bad actors. And it's a game changer, because there was some pending 28 00:03:35.120 --> 00:03:45.590 lawsuits, major ones, that companies were being sued for under 13(b). And presumably, those lawsuits were going to be fruitless or not really 29 00:03:45.590 --> 00:03:51.740 have a lot of weight to them anymore. Because all they could really get is an injunction. The whole idea that they were going to go out there 30 00:03:51.740 --> 00:03:58.670 and pursue all these damages and get all this restitution, it kind of got thrown out the window. So I only have one example. But I think it's 31 00:03:58.670 --> 00:04:07.790 a it's a good it's a good example to focus on. And that is the case in the MCA industry, there was a company being sued by the FTC under 32 00:04:07.790 --> 00:04:18.290 Section 13(b), and what's happened since, I've been keeping my eye on it. It turns out, the FTC is not going to just drop the lawsuit. They 33 00:04:18.320 --> 00:04:26.600 filed a letter with the court this week, saying they intend to amend the complaint. So they got a new theory of what went wrong and how they can 34 00:04:26.600 --> 00:04:35.240 address it. And they they're invoking something called the Gramm-Leach-Bliley Act. And if you're not a lawyer, that's okay. I'm not 35 00:04:35.240 --> 00:04:44.810 a lawyer. And I don't know all the specifics of that particular law, but it has to do with how sensitive information is obtained and used. 36 00:04:45.140 --> 00:04:53.000 So I think a lot of what's been debated and worried about when it comes to the FTC and how you market your business and whether or not you're 37 00:04:53.000 --> 00:05:00.620 misleading customers, whereas Gramm-Leach-Bliley, at least this specific section of it that they said that they intend to pursue when 38 00:05:00.620 --> 00:05:08.930 amending the complaint, has to do with how sensitive data is obtained, and then how it's used. So whether or not that becomes the new plan of 39 00:05:08.930 --> 00:05:17.270 attack going forward for companies that I guess are running afoul of the law is yet to be seen. But I think it's something to definitely consider 40 00:05:17.510 --> 00:05:27.050 in the grand context, because it shows that the FTC can, or even the government in general, may use that as an entry point to regulate. And t 41 00:05:27.080 --> 00:05:33.950 at is, it's not just about whether or not your rates are too expensive, and if you disclosed it, but how you obtain sensitive data from 42 00:05:33.950 --> 00:05:42.410 he customer, and how you shared it afterwards. I think one thing that is talked about a lot in this industry is things like backdooring. How 43 00:05:42.440 --> 00:05:49.790 id the deal get from A to B to C, right? You know, what was the pathway that it went and did the customer adequately know how their information 44 00:05:49.790 --> 00:05:56.390 was being shared? There's a lot of unknowns in there. And sure, maybe there was some disclosure in the original application. But that 45 00:05:56.750 --> 00:06:05.270 might be something that ultimately, a court will have to decide whether or not it was compliant with Gramm-Leach-Bliley. Again, I'm not I'm 46 00:06:05.270 --> 00:06:12.260 not an expert on this area. But if you have the legal resources at your disposal, it might be worth looking into what this is all about an 47 00:06:12.260 --> 00:06:20.900 whether or not you are compliant with Gramm-Leach-Bliley. So get used to at least saying that word and finding out if it's if it's something 48 00:06:20.900 --> 00:06:28.790 that's that's going to be relevant to you. The complaint against the MCA company who I won't name. It's in the article, it's up on our site. 49 00:06:28.790 --> 00:06:39.170 But the FTC did say that they intend to amend the complaint and invoke that as their new plan of attack and in pursuing that company. So stay 50 00:06:39.170 --> 00:06:46.910 tuned for that. You know, there's some good news and bad news. Carol Baskin, FTC, North Carolina. You know what a week it's turning out t0 51 00:06:46.910 --> 00:06:54.020 be already. That's all I have for you today. Thanks so much for following go to deBanked.com/tv to watch more at any time. You can also subscribe 52 00:06:54.020 --> 00:07:01.760 and should subscribe and register for Broker Fair. Brokerfair.org. And I will see you next time. Thanks so much.