Group filer Marx Cards files for bankruptcy
A company in Southern California that is that is responsible for submitting maps to the filing of its clients is filing for bankruptcy. The company filed the Chapter 7 filing this week at BankruptcyHQ and disclosed assets of $89,981 as well as liabilities that exceeded $1.36 million.
List of creditor contains hundreds of individuals across the United States who sent their credit cards to Marx to file with PSA and are waiting to receive them. A large number in the thousands worth of loans were also mentioned in the report. Marx was accepted by PSA as an organization outlet, stated that it earned more than $954,00 in 2020. He also earned $4.4 million in revenues in 2021 but because of the debts he incurred, he was out of cash in August.
Group submissions permit several collectors to send cards via an intermediary that manages the process of collecting the documents, sending the cards to grading firms and then returning them to the customers generally at a lower price . They also provide screening services as well as other advantages.
In his financial statement affairs , which was drafted by his attorney Marx stated that the business was “essentially an Instagram-based contact business” where users would contact Marx via the platform to make payments under their names. As a group bidder Marx could earn a modest profit from his services, and would promise quicker turnaround times and lower cost. However, the company claims the demise of lower-cost service from PSA this year resulted in an interruption in its revenues. After stepping up his business in the year 2020, which included opening a shop, Marx states that the company “was so heavily indebted that his entire earnings were absorbed by weekly and daily installments to merchant banks, which offered loans to ‘business”.
If some of the orders Marx submitted to PSA were processed and the payment was in the bank, Minares said his company claimed it didn’t have funds to pay. An owner of a shop in Ohio who had submitted credit cards to Marx to customers has said that he flew into Southern California and paid for the cards himself, so that he could give the credit cards back to customers even though he’d earlier made a payment to Marx to do the exact task. .
Marx blamed the end of the majority of PSA services in 2021.
In the bankruptcy documents, Marx blamed the closure of the majority of PSA services in 2021 for a large portion of his issues however, he also mentioned another company’s failure to pay $60,000 that he was due and two accountants she employed. In her bankruptcy filing, Marx said the accountant took home a whopping $50,000 over the annual $48,000 salary she was expected to earn. Two accountants from the company quit their positions in November of the previous year. The company also claims that a client did not pay $60,000 in debt to the credit card company.
PSA has pledged to finish the process of sorting out the hundreds of cards that collectors have sent to Marx for free However, the company said that the process was difficult because of the sheer volume of cards sent to Marx. PSA has not yet been able to match a portion hundreds of these cards in its authentication and grading process with Marx customers who have submitted them.
“It’s going be a long time before we can make it all work,” PSA chairman Kevin Lenane acknowledged on Wednesday. He stated that PSA is planning to make changes to its requirements for group submissions which include requiring the initial 50% deposit instead of charging the customers total amount after their cards have passed the process of grading.