The FTC is sending 7,731 checks totaling more than $9.7 million to small businesses who were harmed by Yellowstone Capital, a merchant cash advance company that withdrew money from customer bank accounts without permission. Thank you again for all your help Greg T. Long Island, NY. But keep in mind, this is a moderated blog. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. (The suit is now on hold.). IE 11 is not supported. Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. It became a cycle of death. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. I can not thank you enough for giving me freedom from debt. We can defend you in court if you were sued to buy time and even to successfully defend a judgment from being entered if prove your MCA to be a loan rather than an actual advance. Find the resources you need to understand how consumer protection law impacts your business. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. You pay for our performance and thats what we do we perform! Call us for a free consultation at (866) 890-7337 or click here to send us a message Steps You Can Take to Defend Yourself While a confession of judgment doesn't give you many options, it's not ironclad. Thanks! JC, Queens, NY. 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. Download the NBC News app for full coverage and alerts about the coronavirus outbreak. We serve clients in English & Spanish. Merchant cash advances have grown in popularity in recent years, particularly for businesses that cannot get small-business loans from traditional banks. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. you have signed away UCC Lien rights to your funder, a UCC lien will allow your funder to freeze your receivables , BEFORE THE FUNDS EVER MAKE IT INTO YOUR BANK ACCOUNT. 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. I had a million questions and was pretty lost about what steps I should take next and Mr. Sininsky, quite patiently explained everything to me. What makes our merchant cash advance settlement services stand out from the rest? Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. Forever. I am eternally grateful to you and the rest of Dramer Law. When you stop paying on your merchant cash advances, a merchant cash advance lawsuit will quickly be filed against you and your business. Thank you for helping me. We work quickly on your behalf as the longer you delay with a deed in lieu of foreclosure, the more fees your lender will charge. 7-7-2017, The Law Offices of Kenneth H. Dramer P.C Attorneys at Law were efficient in handling by bankruptcy case. "You can't have people freezing assets and demanding payments at a time like this. Once retained, we waste no time in taking action. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit An extended payment plan for your payday loan may be available, subject to state restrictions. 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. CALL TODAY for your FREE CONSULTATION and let us help you save your business today! A leading provider of merchant cash advances used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed, according to a Federal Trade Commission lawsuit. Thank you again & i hope you dont mind if i touch base with you the future, just to give you updates on how things are going. On March 15, the governor of Ohio ordered an end to all oral surgery procedures; Runion's practice is now open six to eight hours a week. Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Advance . 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. We are available long hours but should we happen to be unavailable for any reason we pride ourselves on returning calls and emails right away, not several days later like most attorneys. 4-6-15, Recently we finished the debt relief program through Dramer Law. Lines Of Credit, Business Loans, & Merchant Cash Advances . Global Legal Law Firmrepresents companies in merchant cash advance lawsuits to collect on underperforming or unpaid debts. Do you need help with a Merchant Cash Advance lawsuit or legal issues? 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. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. View Results from Our Merchant Cash Advance Relief Services. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. Dont understand why we didnt do it sooner I guess we were like a lot others going day by day try to be nice by paying off little by little. Learn more about your rights as a consumer and how to spot and avoid scams. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. A leading provider of merchant cash advances used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed, according to a Federal Trade Commission lawsuit. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. "We're already seeing a decadelong decline in small businesses. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Cash Advance Firm to Pay $9.8M to Settle FTC Complaint It Overcharged According to the, In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced. We can offer advice and help you to protect your assets from your creditors, thereby alleviating the worrying and stressing over frozen accounts or assets. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. The site is secure. The combination of our experience, well-trained representatives, long hours, and state of the art software, allow us to accomplish more in any given day than most other firms only dream about. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. 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! The below options each have their own benefits and drawbacks. A regular debt settlement company can offer one thing that our Debt Relief Attorneys dont OUTRAGEOUS FEES typically charged upfront regardless if they perform or not. The only source of capital he could find was from merchant cash advance companies. 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. 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. Commissioner Rohit Chopra issued a statement. Suit Filed Against Merchant Cash Advance Companies - PYMNTS.com Worked with Michael who was so patient and was very understanding. The site is secure. This year, my wife and I will be celebrating 25 years of marriage and I cant think of a better 25th wedding anniversary gift than this! 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. We work to advance government policies that protect consumers and promote competition. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! Like most people bankruptcy never crossed our mind. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week. A similar situation regarding further recourse to the Merchant Cash Advance purchaser came about in the case Merchant Funding Services, LLC, v. Volunteer Pharmacy Inc. which dealt with the signing of a Confession of Judgment (COJ) in the MCA contract. The underlying lawsuit involved several commonly litigated issues in the MCA space, and the court unambiguously came down on the side of the MCA company. To protect your privacy and the privacy of other people, please do not include personal information. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. To read about this case click here. For more information on how the FTC handles information that we collect, please read our privacy policy. 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. The changes to the NY law are a major win for business owners outside of NY, however, the law does not effect those living in NY as, COJs can still be filed against NY residents, COJs can still be filed against you outside of New York, There have been an increased number of lawsuits filed in New York, The funders that gave you their money do want to make an obscene profit over a very short period of time, but to do so, you have to pay back the money you owe so, so they do not care if you pay all the money back or not, brokers will often set business owners up to fail, If you fail to pay back the borrowed funds . Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. Need an experienced Merchant Cash Advance attorney? But, in the lawsuit, Attorney General James alleges that the Richmond companies' merchant cash advances are in fact illegal, high-interest loans with astronomical and illegal rates. Mike spent time communicating with me either by e-mail or phone. Merchant Cash Advances can be discharged through bankruptcy. During the three-week period, Itria filed suit against 20 small businesses for nonpayment, court records show, most of them outside the state. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. They are filed without a business' knowledge; merchants often learn about them when they try to pay their employees and find their accounts blocked, the lawyers say. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. Their price is very reasonable. 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. We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. 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. 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 . Do you want to reduce the amount of the principal balance that you owe with our merchant cash advance settlement negotiations? Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). If I had any questions or concerns they would answer any questions very quickly and patiently. He said the companies have almost killed his business. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. sincerely Mr & Mrs. Vogel, NY 12-15-14. 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. Office of The Attorney General
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