Minneapolis, MN · Member since 2017 · 83 posts · 89 votes
We are currently in the middle of a scam by erentpayment.com. They have taken money deposited by our tenants and have refused to pay us. They have been very limiting with information and turned their phones off and are not replying to emails. Cancel all automated payments if you currently use their system. We are starting the legal process to take action. I'm guessing they have taking hundreds of thousands of dollars from people. Help spread the word so others are not hurt by this.
Property Manager · Blaine · Member since 2015 · 209 posts · 276 votes
8y
My wife found this company on bigger pockets. She most definitely is in the right, and boarder line obligated to inform the public that a company that used to accept payments from tenants, and disburse the funds to landlords is no longer longer disbursing the funds to landlords. Furthermore, they have shutoff their phones and customer service department, not updated their customers as to the status of their funds, and refused to name their banking institutions or legal representation that they are using.
This is most certainly a fraud, and a large one. If not, they should be updating their customer base as to where their money is at, and when they will get it. This rent collection and payment scheme is the perfect Ponzi scheme. They take a clients money and can move it from bank to bank like it's their own money. (Matt, thats apparently what you think happened). Thus, proving the lack of oversight involved in this kind of business/industry. As long as they can grow their customer base the scheme continues. The creator doesn't even have to put himself out there as the frontman of the scheme, and can hide behind an LLC. Interestingly, Rick S is a "pro" member, claims to be the manager or owner, and has 397 post on bigger pockets. I encourage him to comment, or better yet send me my 13,000$. At this point I doubt either will happen.
I hope I'm wrong, but when the company shuts off the phone and fails to deliver on the "updates" they promise. You have to fear the worse. This company is still accepting "new" money and the public needs to know. I don't want to come across as confrontational, but the public needs to be made aware of the problem/fraud.
Raleigh, NC · Member since 2017 · 10 posts · 5 votes
8y
Jeff, Appreciate your sentiment. I too think that Rick is in a tough position and it is a bad situation for ERP for sure.
However, the network that was put together appears to have a lot of design concerns that were not disclosed and not easily seen until this happened. Too many layers and points of failure. I think that very few of us knew that this was not a direct bank relationship. Shame on many of us for not asking or knowing.
Response to questions and communications has not been great (including taking down chat and phone call capability). Last thing that any organization should do is go dark and not be reachable during tough situations. Extended hold times are even OK, but never shut down support contact capability. If additional staff to answer phones was or still is needed temporarily, that is just business and should have been done. Personally, I have sent questions to ERP and have had zero response. Some yes, but others no even after many days now.
If there were concerns regarding ECheckit, then ERPs customers we should have been advised proactively to minimize risk if we chose to do so. Let us, as the customer, make the risk decision. Personally, I would have shut off payments if I had known that ERP was planning to make a change in processors until stable. The switch in processors had to have been in motion for some time. Payment delays were evident before big problem window.
Transaction reversal R10 or R7 are not being accepted by all financial institutions.
From my own personal view, the forward issue now is simple trust of what will happen, if issues (whatever it might be) come up again.
Boxford, MA · Member since 2017 · 6 posts · 6 votes
8y
Thank you Bill - this is exactly the problem with this situation. While we can all appreciate the unexpected challenges of running a business, how ERP chose to deal with its customers should leave no confidence to any in the future.
Brooklyn, NY · Member since 2017 · 4 posts · 0 votes
8y
One of my renters paid by prepaid credit card because they don't have a bank account. So we can't even do the R10 process. Is there anything I can do for prepaid credit card payment made on October 5th?
Sun Prairie, WI · Member since 2013 · 150 posts · 69 votes
8y
@Jim Adrian
Yes, I have received two rents since the meltdown. I did have a rent and security deposit that was impacted by whatever it was that happened and my tenant was able to successfully reverse those payments.
Yes, I have received two rents since the meltdown. I did have a rent and security deposit that was impacted by whatever it was that happened and my tenant was able to successfully reverse those payments.
Sun Prairie, WI · Member since 2013 · 150 posts · 69 votes
8y
@Jim Adrian
One was to be drawn on October 19 but was drawn later. Ultimately deposited into my account on October 27. Not sure when they actually drew it out. The other was scheduled to be drawn on November 1 and was deposited in my account on November 7. One was scheduled for November 2 and I haven't received that one yet but I anticipate it tomorrow. That said, I'd say it is still quite slow. My tenant who got caught in the original bankruptcy mess started using Zelle to pay me and that is the same day and free. I'd look into them if I was going to use any service.
Rental Property Investor · Littleton, CO · Member since 2014 · 150 posts · 114 votes
8y
I looked back at my records and rents were deposited a few days later than typical for October, but they were typical in November, in my account a few days after payment was made. .
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
8y
There is a Facebook group for landlords dealing with this missing rent nightmare, called erentpayment discussion group; its by landlords for landlords. There is help there to get the banks to accept the ACH R10 reversal, as well as updates on what is going on with the root cause if this mess.
Landlords are getting their rents since the change to the new processor, but it takes a day or two longer. And of course weekends don't count.
Raleigh, NC · Member since 2017 · 10 posts · 5 votes
8y
Nothing really new on the Facebook discussion. Wells Fargo, from what I am dealing with, seems to be the worst for cooperation. Has anyone had any success with Wells Fargo and have any suggestions or contact information that can be given to tenants to assist? The local branches are very uncooperative. Thanks
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
8y
@Bill D. Actually, on that FB group, there is help on there specifically for Wells Fargo, as well as a letter from NACHA itself (the governing body of ACH transfers) that the tenant can take with the first time they go to any bank, this has helped people tremendously. As well as many other updates such as people posting updates on their successes and with which banks, updates on the echeckit banktrupcty...
Rental Property Investor · Littleton, CO · Member since 2014 · 150 posts · 114 votes
8y
I had some minor delays with eRentpayment, that said, compared to tracking renter's checks and trying to collect late fees, waiting for checks to clear, it was worth the $3 per transaction, but this thread is making me nervous.
Has anyone out there notbeen paid at all, or do you have reason to believe the company is in trouble?
Minneapolis, MN · Member since 2017 · 83 posts · 89 votes
8y
@Gretchen P. We are currently out $10,000 that we are trying to collect via R10 returns. It has turned out quite difficult and we are still trying to track down Oct rents. I would be very cautious to stay with this company. We have removed our account.
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
8y
@Gretchen P. there are quite a few landlord customers of erentpayment who haven't gotten their rent deposited in their bank account if it was due to them from something like Oct 1-Oct 12. It's not all landlords. Between the tenant, landlord, and erentpayment, there was also a bank and two payment processors in the ACH money chain. One of them, called echeckit, went bankrupt. When that happened, another in the chain, Check Commerce, froze 5M in money echeckit was moving. That got a lot of enrentpayments rent transfers stuck. Since then, erentpayment removed echeckit, Check Commerce, and the bank they were using for transfers from the money chain, and now only has Esquire bank in the money chain. To make the whole thing worse, erentpayment did/is doing a *horrible* job of communicating what was going on with the effected landlords.
@Gretchen P. We are currently out $10,000 that we are trying to collect via R10 returns. It has turned out quite difficult and we are still trying to track down Oct rents. I would be very cautious to stay with this company. We have removed our account.
How is it possible that 22 days after starting this thread you are still out $10,000? My wife works at a bank and they reverse ACH transactions all the time. They basically reverse anything that is disputed. Did you contact your tenants immediately to start this process? I work with Cozy and have not had problems, but want to understand why you are having trouble here in case something similar happens to me in the future.
Minneapolis, MN · Member since 2017 · 83 posts · 89 votes
8y
@Joe Splitrock, We have been working on this since day 1. Most of our tenants bank with Wells Fargo and they have been very challenging to deal with. With phone calls to at least 10 people I have gotten them to agree to the R10, when my tenants submit a specific form. Granted, my tenants have already been on the phone and to the branches multiple times are tired of dealing with this issue as they “already paid their rent.” It has been a very frustrating process. Now we are having difficulty with tenants paying us the returned funds. Overall, a big mess! Any suggestions on what we else we can do? We’ve offered our tenants an incentive off next month rent if they can complete this.
@Joe Splitrock, We have been working on this since day 1. Most of our tenants bank with Wells Fargo and they have been very challenging to deal with. With phone calls to at least 10 people I have gotten them to agree to the R10, when my tenants submit a specific form. Granted, my tenants have already been on the phone and to the branches multiple times are tired of dealing with this issue as they “already paid their rent.” It has been a very frustrating process. Now we are having difficulty with tenants paying us the returned funds. Overall, a big mess! Any suggestions on what we else we can do? We’ve offered our tenants an incentive off next month rent if they can complete this.
My wife used to work for Wells Fargo and doesn't have good things to say about their internal operations. My wife suggested calling the bank that is holding the funds. The transfer into your account from previous months should show the routing number of the sending bank. Talking directly to the bank that has your money might shed some light on what is happening.
Reversing the ACH is your best bet. With so many reversals it is going to trigger an investigation into the processor. That could include fines or even revoking their ACH license.
That is crazy that your tenants would get the money back and not give it to you. I would tell them, rent is not paid for that month and it needs to be resolved. Anyone who got their money back and refuses to give it to you is intentionally with holding rent.
Property Manager · Blaine · Member since 2015 · 209 posts · 276 votes
8y
I know it doesn’t matter, and it doesn’t do any good, but it sounds like there are still people willing to give this scumbag their business, so I guess it’s still worth repeating. In my opinion this is 100% fraud. We all paid this guy to process our payments. That was the only thing we paid him to do. Well, my payments weren’t processed. His webpage made all sorts of “promises” and claimed his business was backed up with insurance. I still don’t have my money. Crazy to me that if you rob a convenience with a gun for 200$ bucks you get 5-10 years in jail. If you supervise an operation that has millions taken from your customers you get to turn off the phone for a week and then try to find new victims. This rick is a horrible person, this company is a sham, and they are a disgrace for continuing to take people money when deep down they know they aren’t smart enough or honest enough to handle other people a money.
Rental Property Investor · Winslow, ME · Member since 2008 · 826 posts · 281 votes
8y
Yeah, I can't believe anyone would continue with them. They never warned anyone ahead of time other than a vague post on FB, and the first 7 days they were completely obscure about the whole matter. After about 2 weeks they finally started to sound professional. I've put in 3-4 hours so far trying to get back $270, $225, and $225. My tenant's bank made him shut down his bank account and open a new one, and the one payment I had coming to me came in but got sucked back out 3 times. The fact that they didn't simply say "Hey, this isn't our fault but we'll cover your money and then go after the guilty party on our dime" is just ludicrous. It's like a painter telling a client that his employee spilled paint on his car and giving the client the name and number of the employee with instructions and suggestions on how to get the employee to make things right. It really is exactly like that.
Raleigh, NC · Member since 2017 · 10 posts · 5 votes
8y
Hello all. Just for awareness. Base Commerce (Check Commerce) is now refusing to honor requests for payment or credit reversals. They are also sending a memo in response if you talk to them. Below is the memo.
There is a problem with the memo as you can see below. Base Commerce has documented that they did not discover the problem unit 10/16. But funds are being held for transactions between October 3rd and October 10th. This is a problem in that Base Commerce is in violation of NACHA rules by not processing payments on time. Nothing should have been delayed or held prior to October 13th from my view.
I have filed a BBB complaint with the Tempe AZ BBB office and I have also submitted a complaint to the NACHA governing office of the network. I understand that Base Commerce may be able to hold funds, but going back retroactively or prior to the window of discovery is a problem and should be challenged.
I will update after I receive responses. Below is memo that Base Commerce is sending.