How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RGMacEsq Your Own Question
RGMacEsq
RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 16118
Experience:  Licensed Texas General Practice Attorney
19487448
Type Your Business Law Question Here...
RGMacEsq is online now
A new question is answered every 9 seconds

In 2011 a friend signed up with a merchant account with a US

This answer was rated:

In 2011 a friend signed up with a merchant account with a US company called "BlueSnap" and used it to accept payments for his products. Shortly after accepting payments with Bluesnap - they terminated his account due to the niche that he was in. His website was considered high risk so they kept some money as a reserve against chargebacks and refunds.

Fast forward to 2013 they are still hold vast majority of funds and have not provided a detailed accounting for the funds. I live very close to the company so I offered my help in recovering his money in exchange for 50% of any funds recovered.

Question is what kind of document do I need to sign with my friend? Can I sue the company on his behalf or does he need to assign me the debt first and then I can sue the company?

RGMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

RGMacEsq :

If you're going to be going after a receivable or debt owed to him, and you're in Massachusetts, you're going to need to be a registered debt collection agency. See the laws here: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section24

RGMacEsq :

So for you to act as the agent for your friend to do this, you would have to be a licensed debt collector. But you can purchase this debt, even for a contingent amount. http://www.uslegalforms.com/us/US-00469.htm

RGMacEsq :

The link would be an assignment form that you could use.

RGMacEsq :

Without becoming a debt collector yourself, the assignment of contract form would be your best (and possibly only) way of being able to do this.

RGMacEsq :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!

Customer:

Ok so if the total outstanding debt owed to my friend is $420k then I could offer my friend say $20k to buy this debt?

RGMacEsq :

You could certainly do that.

RGMacEsq :

Basically it's up to you and your friend for a private transaction, as to the valuation of the debt, etc...

Customer:

Could I also offer him a percentage of what I receive? i.e. I'll give you $1.00 now and 50% when I settle with the company?

Customer:

ok I assume yes based on your last answer

RGMacEsq :

Instead of making it a percentage (which would indicate ownership and/or control), I would suggest a staggered "contingent" formula.

RGMacEsq :

That is, if you recover between $50,000 and $75,000, he gets $30,000, if you get between $75,000 and $100,000, he gets $65,000 (or something like that).

RGMacEsq :

Again, since it's not a set percentage, it would be easier to say that you were the owner and in complete control of the negotiations, etc...

RGMacEsq :

And that should be reflected in the sales price in the assignment of contract (or at least a separate appendix as to how any additional future compensation due him would be calculated)

Customer:

ok I see. Thanks for your help!

RGMacEsq :

My pleasure.If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX good luck to you!

RGMacEsq :

Did you have any other questions before you rate this answer?

RGMacEsq and 3 other Business Law Specialists are ready to help you

Related Business Law Questions