merchant cash advance lawsuit
According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. A merchant cash advance is just one way to secure financing for your business. "You can't have people freezing assets and demanding payments at a time like this. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. "It's down a lot, more than 50 percent," she said. Specifically, the complaint states that Yellowstone promised that business owners would not be required to provide collateral or be subject to a personal guaranty. It is our goal to help you find the right funding solution for your unique needs and situation. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. Franchisee Conversations with Chair Khan, Statement of Commissioner Rohit Chopra Regarding Yellowstone Capital, LLC, Blog: Small business targeted with unauthorized withdrawals, Blog: Protecting small businesses seeking financing during the pandemic. NEWARK - Attorney General Gurbir S. Grewal announced today that the State has filed a lawsuit against Yellowstone Capital LLC, its parent company Fundry.US LLC, and six other associated companies, alleging the merchant cash advance ("MCA") providers targeted small businesses with predatory lending and abusive collection tactics that caused Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. Our business debt attorneys and arbitrators have successfully worked with many struggling business owners who werent able to qualify for traditional bank funding who were then forced to pledge future receivables to one or more Merchant Cash Advance companies for the capital they needed. Again, please accept our gratitude for all your help. What a wonderful feeling to be out of debt at last! Suit Filed Against Merchant Cash Advance Companies - PYMNTS.com Small businesses that need cash must increasingly rely on merchant cash advance lenders members of a little-known industry with almost no government oversight; effective interest rates that can hit 400 percent, according to congressional testimony; and direct access to their customers' bank accounts. "The FTC has to seriously look at rules that ban some of the most extortionate clauses in these loan contracts," he said, adding that the FTC is prepared to "go after some of the loan sharks and their lawyers who run lawsuit mills that are filing some of these sham collection actions.". Are your accounts frozen or have liens been placed on your assets? I was beside myself when I spend a hit letter from an attorney who.informed me that I was in debt for a very large amount of money that was owed 15 years ago I thought the matter had been resolved through my divorce, but to.my dismay it wasnt and had accrued an astronomical amount of late payments and finance charges, they froze our bank accounts , but through the expertise of Mr.Sininsky he resolved a 15 year matter in 2 weeks unfroze our accounts and saved us more than we could of imagined I recommend the Dramer Law firm highly and lifted a great deal of stress for us. But the 81-year-old lawyer says that's not how it worked when his solo practice accepted $55,000 from Scottsdale, Ariz.-based . Default judgments by MCA lenders and their law firms can be vacated giving leverage to small businesses to pursue resolution of the debt via litigation and or settlement. The merchant cash advance agreements typically allow for these remedies. To protect your privacy and the privacy of other people, please do not include personal information. Is a Merchant Cash Advance (MCA) ruining your business cash flow? trade references (of which some are your customers); bank statements (they will looks through your statements to see who pays you); or. For how long? Most Sincerely, Ken and Nicki K Highland, NY. I would highly recommend this firm to anyone going through financial difficulty and need good advise. The FTC had previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich. At a time when many small businesses are struggling to stay afloat, the FTC is paying close attention to the tactics of companies claiming to throw them a financial lifeline. Do you want to reduce your payments with our cash advance repayment options? I was initially hesitant to enter into any debt settlement program but now, without hesitation, I will say it was the best decision I could have made . Your promptness, efficiency, and trustworthiness have always been beyond my imagination. Of course I want to thank you further than what I wrote. If I have any other legal issues that fall within the area in which their office practices, its literally a no brainer for me, I wouldnt go anywhere else. Teresa J., Bronx NY. All this just to get you to sign on the dotted line. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. The FTC sued Yellowstone and its owners in 2020, and they agreed to settle. Other companies and law firms offer debt relief we specialize in it! We'll get into all of the specifics in the article below, but in most cases, when a business defaults on an MCA, the contract states that the MCA lender can immediately begin to: File a collection lawsuit. You will be given all the facts you need, and then you will be given plenty of time to think things over. At The Law Offices of Kenneth H Dramer PC, before we make any recommendations, our debt lawyers, certified debt relief specialists, and paralegals are trained to ask the right questions to find out about your specific situation. (The suit is now on hold.). Although I wish I had never put myself into the position to need this companies services, Mr. Sininsky was very extremely effective in working with me to reduce my consumer debt. I feel as though a weight has been lifted that burdened me physically and mentally for a long time. Business is hurting, Kight said by phone. UCC liens are by far the most frequent issue we hear about from those first contacting our Law Firm for help after having defaulted on their payment obligations. Rather than infuse the business with necessary funds, the MCA eats away at the businesses revenues and cash, until the ACH repayments (daily or weekly) become cost prohibitive and inevitably impossible to repay. We may routinely use these records as described in the FTCsPrivacy Act system notices. I didnt feel rushed or like I was being blown off. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. Instead of lending an amount of money over a period, a Merchant Cash Advance company will purchase your companys future receivables coming into your merchant account. If you do, you must create a user name, or we will not post your comment. These promises appeared in online ads and other forms of marketing, but in many instances Yellowstones contracts actually required business owners to be personally liable if their business failed to make repayments, as well as put the business and all of its property up as collateral. What makes our merchant cash advance settlement services stand out from the rest? Texas attorney Christopher Phillippe thought the deal was simple: Get money up front to pay for litigation costs and pay it back only if he wins in court. Hurt bad," one text said. Comments and user names are part of the Federal Trade Commissions (FTC) public records system, and user names also are part of the FTCscomputer user recordssystem. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Hi Michael, Just wanted yo drop you a note in appreciation for all you have done for Bob & I in regard to the Capital One situation. We never agree to anything without first consulting with you and getting your approval. Nothing will be hidden from you as we are a full disclosure law firm. Before sharing sensitive information, make sure youre on a federal government site. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. Hes truly an asset to your business. SoloSuit can help you take a stand and win in court. FTC Alleges Merchant Cash Advance Provider Overcharged Small Businesses We wont post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. No matter where you are in the country you can contact our firm in Long Beach, NY to set up a free business debt relief consultation. Highly recommended. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. They can make all the difference when you're in a situation where you need access to money immediately. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. Lillian L. Queens, NY 7-20-2015, To Whom It May Concern , We would like to thank Michael Sininsky and your law firm for helping us get out of debt and back on track . We think back at how hopeless we were feeling when we first contacted you and your firm, how reassuring it was to speak with you and how you empowered us to get this dark cloud behind us. Not only did you waste money in fees to the settlement company, but your funders have now all assessed extra fees per their contract which typically include: DONT FALL THE FOR DEBT SETTLEMENT LIES. Small businesses have borrowed billions from unregulated merchant cash advance companies. The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance exceeded 1,900%. We were thankful that he had our account . We would like to say Michael Sininsky is an asset to your company . Many business owners are struggling so badly that they will believe any promises of help for a way out and end up hiring a debt settlement companies. We do not only offer one path, as no one process can solve everyones needs. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? They do not belong to or represent views of the Federal Trade Commission. It is your choice whether to submit a comment. In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. 6-13-16, I think you and the company basically do a good job and I appreciate it. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. ! The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. In this case, the FTC alleged that Yellowstone and its owners continued withdrawing money from businesses' bank accounts for days after their balance had been repaid. Handled my debt in a month and cut it in half. access to your bank account (they will looks through your account to see who pays you), insufficient fund fees (typically $35 per occurrence), stop payment fees (typically $500 $5,000), fees for changing bank & merchant accounts (typically $100 $2,500), 3rd party interference fees (typically $2,500 $5,000). The flood receded when New York courts stopped accepting electronic filings in nonessential matters on March 23. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. "Currently in route to u right now," the text said. The FTC's lawsuit alleged that Yellowstone . "Normally we're usually really busy. Soon after he received the money, the amount of the repayments began rocketing, Runion said. For instance, the filings can be entered without a hearing or review by a judge. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. This COJ caused further recourse and hence, was deemed to be a loan rather than an actual advance, thus voiding the contract. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. View Results from Our Merchant Cash Advance Relief Services. If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. He kept me up-to-date about the process of this whole mess I got myself into and he was truly a comfort to me these past few months. A few years ago I could not imagine a way out of this hole that I dug myself. Not only did you help me do this, but I have learned some other valuable lessons that are priceless like dont spend beyond your means and if you dont have cash for it dont buy it. I hope other staff in your office are as efficient and compassionate as Mike is. Clients Cry Foul Over Litigious Litigation Finance Company (4) They advertised no upfront fees and then pocketed a hefty chunk of cash off the top, leaving businesses with substantially less funding than they had been promised. Depend on fast response times. We wouldnt of call if we know what to do. As you know being in debt that you cant see your way out of causes so many restless nights and a lot of stress and anxiety. In hindsight I wish I had declared bankruptcy but this was clearly my decision. As a provider, you deserve to get paid for the cash you advance. Dial 516-670-5165 right away. Prev Post A merchant cash advance is a type of financing that allows small business owners to access funds quickly. It became a cycle of death. FTC official: Legal 'loan sharks' may be exploiting coronavirus to April 2019: How Mulvaney undid consumer protections from predatory lenders. Our merchant cash advance lawyers will work with clients to assess their debt situations and advise them on the best path to financial stability. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. Merchants like Indelicato have been hammered by the coronavirus outbreak. Lawsuits are especially great if you used a broker to obtain funding. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. But there's nobody outside.". But keep in mind, this is a moderated blog. When the business owners call to find out what is going on, they quickly find out that no progress has been made! MCAs and Loans also differ in that loan payments need to be paid regardless of receivables coming into your account. If sued, they will NOT be there for you as they can NOT represent you in court like we have done for our clients numerous times! Mike spent time communicating with me either by e-mail or phone. In some states, you may be able to fight it if you can prove any of the following: Based on your current income and your financial hardship, we will determine which course of action will work best for you. Fast funding for your financial goals. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. They advised me every step of the way through the difficult process of bankruptcy. Florida Court Affirms That Merchant Cash Advance Product Not Subject to Any representative that will speak with you will have a minimum of 10 years experience. Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. Well send out a limited power of attorney notice to anyone trying to collect money from you to make sure that they contact our Law Firm instead of contacting your company. The site is secure. I never felt at anytime like I was getting less than 110% from them. Attorney General James Sues Predatory Lender That Threatened Violence