merchant cash advance lawsuit

According to the complaint, the defendants told business owners that no personal guaranty of collateral was required and then put personal collateral requirements in their contracts. Let our Merchant Cash Advance Debt Relief Attorneys to defend you or for our Certified Debt Arbitrators to negotiate on your behalf to save you as much time and money as possible the right way! Now half year later we are debt free, no need to worry from phone calls from debts collectors. Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. We will work quickly and efficiently to bring a successful resolution to your situation. Lines Of Credit, Business Loans, & Merchant Cash Advances . In addition to potentially saving you money, retaining Dramer Law will save you time as we, Our Lawyers Can Help Whether or Not You Signed a Confession of Judgment. Our debt relief representatives will be sure you understand the cost benefits and will be sure to disclose our fees fully. 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 . Not only did you get me out of debt but you gave me a freedom that cant be described. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). All this just to get you to sign on the dotted line. For how long? So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Thank you for helping me. Debt Settlement can be a great option for some business owners, but for others it can be horrible! receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf. The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Until we got hit with a summons from the court ( for over 100K lawsuit). Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. Find legal resources and guidance to understand your business responsibilities and comply with the law. Do you want to reduce the amount of the principal balance that you owe with our merchant cash advance settlement negotiations? The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The companies generally provide a predetermined amount of money to a business in exchange for future receipts. The FTC says the defendants also forced people to sign confessions of judgment, which allowed the defendants to go straight to court for an uncontested judgment in case of an alleged default, leading to the unlawful seizure of business and personal assets. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit You never made me feel harried, pressured or overly anxious about paying off my bills. On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. We have years of experience dealing with most Merchant Cash Advance Lenders. We do not only offer one path, as no one process can solve everyones needs. Hurt bad," one text said. We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. It became a cycle of death. as well as any of your customers that pay you! We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). Most MCAs have turned to other states like Pennsylvania, Illinois, & Utah to file their COJs, and these states have seen an increase in COJ filings ever since the NY laws have changed. We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. If revenue dries up and the money stops flowing, merchant cash advance companies can freeze business owners' accounts by filing so-called confessions of judgment. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. You will be given all the facts you need, and then you will be given plenty of time to think things over. Bronx, NY 11-24-15 review posted on Yelp. A merchant cash advance is just one way to secure financing for your business. Other companies and law firms offer debt relief we specialize in it! When the business owners call to find out what is going on, they quickly find out that no progress has been made! SoloSuit can help you take a stand and win in court. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. What Happens if I Default on a Merchant Cash Advance? I kept hoarding mail and it overwhelmed me. I wish everyone would be like that. The case is further summarized here. A merchant cash advance, MCA for short, [] Read Now They will tell you that you only have to make one payment into an escrow account and theyll settle your balances for less making MCA debt settlement seem like a walk in the park. Yellowstone Capital misled potential customers and withdrew additional payments customers did not owe, Competition and Consumer Protection Guidance Documents, or report fraud, scams, and bad business practices at, sign up to get the latest FTC news and alerts, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments, FTC Lawsuit Leads to Permanent Ban from Debt Relief, Telemarketing for Operators of Debt Relief Scam, Is Franchising Fair? Perhaps I will be like that one day (in another life). Peter L Valley Stream, NY 3-2-17, When I initially called, I spoke to Mike. According to the FTCs complaint, Yellowstone has regularly withdrawn hundreds or thousands of dollars from businesses accounts for days after customers had repaid the full amounts owed in their contracts. What a wonderful feeling to be out of debt at last! "We have no intention of pursuing this matter at the present time," Feldman wrote. "He more or less presented me the net cash I would receive and the payments. For more information on how the FTC handles information that we collect, please read our privacy policy. Our mortgage negotiation services are offered a fee structure as such that you pay part of the fee when retaining our firm and part of the fee only if were successful. Merchant Cash Advance Lawsuits - Global Legal Law Firm But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. We serve clients in English & Spanish. Rohit Arora, Biz2Credit's co-founder and chief executive, said in a telephone interview: "In some cases, we have to file these cases, but we also try to work with our customers. 7-7-2017, The Law Offices of Kenneth H. Dramer P.C Attorneys at Law were efficient in handling by bankruptcy case. For instance, the filings can be entered without a hearing or review by a judge. "I'll show you what type of loser you are you clown of a man.". Beat Everest Business Funding in Court | SoloSuit Blog Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. Office of The Attorney General Call the police I don't care.". Sued for a Business Loan or Merchant Cash Advance? Through negotiations, we can restructure your advance to make it more affordable or can offer a reduction of the principal balance owed through settlement negotiations and Merchant Cash Advance Debt Relief. In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced orderputs them on the Banned Wagon, prohibiting them from engaging in small business financing and debt collection. Merchant cash advances have grown in popularity in recent years, particularly for businesses that cannot get small-business loans from traditional banks. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Mike was able to work with me, keep me calm and focused, and I have gone from being in foreclosure to NOT being in foreclosure!! It is true that a judgment (whether entered by COJ, default, or awarded) can also be used to freeze your incoming receivables, however, most funders do not use judgments to freeze receivables (especially now that COJs in NY are banned against out of state business owners) so filing a UCC lien is a much quicker tool! Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. A few years ago my husband and I had accrued entirely too much debt and no matter how hard we worked or how much we tried, we were unable to keep up with our bills and making the minimum payments was getting us nowhere. With an added personal guarantee, it gave recourse to the MCA lender to collect, even if the merchant account was not performing, thus additionally reducing the MCA purchasers risk of not being repaid. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. Lines Of Credit, Business Loans, & Merchant Cash Advances We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. To protect your privacy and the privacy of other people, please do not include personal information. This saves time for you and eliminates any extra stress for you as time is money and being stress free is just as important as being debt free! Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. Find legal resources and guidance to understand your business responsibilities and comply with the law. Our merchant cash advance lawyers will work with clients to assess their debt situations and advise them on the best path to financial stability. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. It is your choice whether to submit a comment. Merchant cash advances are a short-term form of business financing. 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. He said the companies have almost killed his business. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. Need an experienced Merchant Cash Advance attorney? Be well. Mary R. Bayshore, NY 4-30-2018, I would highly recommend Dramer Law for your debt settlement needs. Thanks! JC, Queens, NY. Small businesses have borrowed billions from unregulated merchant cash advance companies. The personal guaranty being a required condition of the MCA contract was one fact of this case which showed the need to repay the advance was undeniable. You can further research this case here. We work to advance government policies that protect consumers and promote competition. The FTCs complaintagainst Yellowstone Capital, Fundry, founder and CEO Yitzhak Stern, and president Jeffrey Reece, alleges that they unlawfully withdrew millions of dollars in excess payments from their customers accounts, and to the extent they provided refunds, sometimes took weeks or even months to provide them. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. According to the complaint, these fees totaled hundreds and even thousands of dollars, and were not revealed to business owners until, in some cases, after their contracts were signed, leading one business owner to tell the defendants, you guys are like highway robbery.. And some offered hardship /debt relief or settle your debt for less.. no matter what you call it at the end you still have to pay the creditors, the debts collectors and the lawyer. Beyond withdrawing unauthorized payments and failing to provide businesses the promised amounts, the complaint also alleges that the defendants relied on deceptive marketing to promote their services. Many of your customers that receive notice of the UCC Lien filed against you may see that as a sign of weakness and may also choose to do business elsewhere so it can cause problems in more ways than one. He provided a photo to NBC News. A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. From the initial consultation and throughout the entire process ,Michael patiently and fully explained everything. Learn more about your rights as a consumer and how to spot and avoid scams. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. 6-13-16, I think you and the company basically do a good job and I appreciate it. Specifically, the complaint states that Yellowstone promised that business owners would not be required to provide collateral or be subject to a personal guaranty. If the merchants fall behind on their payments, some lenders send threatening emails and texts and even pay visits to borrowers' homes to try to collect, lawyers and small business owners say. Under a typical deal, a business might receive $40,000 in exchange for agreeing to hand over $50,000 in future revenue over a few months. We do not want you to be harassed well take over the calls for you. Another small business borrower who's been through the wringer with merchant cash advance companies is Jon Runion of Runion Dental Group in Columbus, Ohio. We wouldnt of call if we know what to do. Aggressive Business Lawyers at Affordable Rates The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. ! "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. Depend on fast response times. Each option will have its own savings potential. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. NOTE: The Commission files a complaint when it has reason to believe that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. The complaint alleges that these practices violated the FTC Act. Business is hurting, Kight said by phone. Arverne, NY 2-6-17, Happy new year! The below options each have their own benefits and drawbacks. MERCHANT CASH ADVANCE LAWSUITS and JUDGMENTS - Lebedin Kofman LLP And for . The case will be decided by the court. If you are an out of state business owner, a confession of judgment can no longer be filed against you in the state of NY. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. I am able to once again look others in their eyes. Attorney General James Sues Predatory Lender That Threatened Violence Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. The merchant cash advance agreements typically allow for these remedies. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. You pay for our performance and thats what we do we perform! "The coronavirus crisis is putting millions of small businesses in a precarious situation, and I'm really worried that loan sharks are exploiting the situation," said Rohit Chopra, one of the five commissioners who run the Federal Trade Commission.

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