Find legal resources and guidance to understand your business responsibilities and comply with the law. He is very professional and extremely helpful. Since our clients dont have tons of money to spare like attorneys that practice in other areas of law, we charge low fees making our services affordable for anyone that needs help. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. We expect commenters to treat each other and the blog writers with respect. 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. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. It's an alternative form of financing unfamiliar to many small business owners. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. Learn more about your rights as a consumer and how to spot and avoid scams. 6-13-16, I think you and the company basically do a good job and I appreciate it. ! Three merchant cash advance companies are facing a lawsuit from New York Attorney General Letitia James over reportedly practicing illicit measures when loaning money to clients, according. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. There have been an increased number of lawsuits filed in New York since the COJ ban has gone into place which is a great thing, as lawsuits can be defended, and doing so will buy you much needed time to either work out a payment arrangement or a discounted settlement payoff. Business is hurting, Kight said by phone. Runion said he told the cash advance companies that he didn't have the money to pay them. Thats a savings of $61, 000.500 , or a 70% discount off our balances. And for . In hindsight I wish I had declared bankruptcy but this was clearly my decision. We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. We will send notification of power of attorney to your actual MCA Purchaser, their collectors, their attorneys, and even the Marshall or Sheriff if they are now involved. NBC News reviewed some of the communications, including videos of a visit by a collection agent to a borrower's home and another to a borrower's office by an expletive-spewing man trying to collect on a loan. Thanks! JC, Queens, NY. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. 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). We have heard many horror stories. New Jersey Attorney General settles lawsuit against merchant cash advance providers. The Commission vote authorizing the staff to file the complaint was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. With just one meeting with you, you gave me hope that just maybe I too could live debt free and once again become a responsible spender. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. Freeze your business's bank accounts. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. Cash Advance Firm to Pay $9.8M to Settle FTC Complaint It Overcharged A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. Court documents show that amid the pandemic, so-called merchant cash advance companies are pursuing legal claims against owners that freeze their bank accounts and are pressing their family members, neighbors, insurers, distributors even their customers for money the lenders say they're owed. 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. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. FONDLY BARBARA & BOB G Brooklyn, NY 11-16-2015, I was deeply in debt and after I tried everything I could think of -including a reverse mortgage-I heard of this law firm and I was told to contact Michael Sininsky. This benefits you when we contact these companies on your behalf, they know the accounts will get resolved and therefore we are usually able to avoid legal action! To read about this case click here. Some business owners said they are being swamped with new texts and emails offering funds. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. Give Mike a call and a chance, his very sharp and on the point. Learn more about your rights as a consumer and how to spot and avoid scams. It is your debt and your money, soyou have the final say in all of our negotiations. This can be said for ANY service we offer from negotiations to litigation to bankruptcy. A small-fleet owner received this text from a merchant cash advance provider. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. (The suit is now on hold.). I kept hoarding mail and it overwhelmed me. 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. 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? He explained your retainer fee; that costs for filing papers; phone calls, and other incidentals, would be deducted from that fee and, if any fees were due at the end of the process, I would be liable for those additional fees. The comments posted on this blog become part of the public domain. At The Dramer Law Firm, our fees are about 1/3 of what most debt settlement companies charge and we only charge a very minimal amount upfront (most of our fees come when we succeed)! The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. Beat Everest Business Funding in Court | SoloSuit Blog 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. I hope other staff in your office are as efficient and compassionate as Mike is. 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! We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. "Now, more than ever, alternative lending is going to be needed by small businesses," said Shane Heskin, a lawyer at White and Williams, who represents Indelicato of North River Outfitter and other merchants against direct lenders. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. We will take our time with you and help evaluate what your best course of action should be. If you Merchant Cash Advance position is eating away at your business cash flow and revenues, don't hesitate to contact Texas Merchant Cash Advance Attorney Grant Phillips Law, PLLC - serving clients in Texas and . We can convert the factoring method of your calculated payments, convert payments from daily or weekly withdrawals to monthly, etc. Lines Of Credit, Business Loans, & Merchant Cash Advances . Small businesses have borrowed billions from unregulated merchant cash advance companies. 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!! The problem is, you will NOT receive a refund of any fees paid to the debt settlement company and your business is now far worse off than it was! A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". The biggest . A merchant cash advance, MCA for short, [] Read Now For a free consultation regarding your merchant cash advance lawsuit, contact our New York merchant cash advance lawyers at (516) 217-4488 or fill out a form. Call today for your free consultation with an experienced member of our team who will ask the right questions to determine the best course of action. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. For more information on how the FTC handles information that we collect, please read our privacy policy. sincerely Mr & Mrs. Vogel, NY 12-15-14. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. How Do Merchant Cash Advances Work? Looking for legal documents or records? If funds do not come into your merchant account, the MCA company should not collect. Not only did you get me out of debt but you gave me a freedom that cant be described. 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. We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. But the bank backed out after he had signed a new lease and begun construction on the second office, and by spring of last year, Runion said, he desperately needed funding. You should never settle for less when trying to settle for less! Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. Merchant Cash Advance Relief Attorneys | The Law Offices of Kenneth H The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. "Their strategy was always to get more," he said. Looking for legal documents or records? Lendmark Financial Services: Convenient Personal Loan Solutions Fast funding for your financial goals. As couple we are able keep certain amount of assets. I can not thank you enough for giving me freedom from debt. Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. Before sharing sensitive information, make sure youre on a federal government site. Three federal rulings scrutinize the business model on which merchant cash. The key to understanding how to litigate these cases is knowing where an MCA differs from traditional loans and credit lines, defined by the risk involved by the purchasing company. Federal government websites often end in .gov or .mil. 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. They were so helpful at a very difficult financial time in my life. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. The first missed payment invokes the lender's right to pursue you and your business. 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 wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. The success fee helps ensure we are incentivized, so youll know we have your best interests in mind. All of our client relationships are One on One. As a provider, you deserve to get paid for the cash you advance. The MCA companies will almost always move to sue the business immediately. Sued for a Business Loan or Merchant Cash Advance? SoloSuit can help you take a stand and win in court. According to the, In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced. Im so relieved. I wasnt even their client at this point and they were already going above and beyond. Dial 516-670-5165 right away. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. 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. Recommended! Alex M. Floral Park, NY 12-24-14, I would like to open by saying how grateful I am to Michael Sininsky for helping me with my legal problem. Highly recommended. 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. Indelicato said he began dealing with merchant cash advance companies around 2016, when he wanted to expand his business and needed more money than his conventional bank loan could provide. 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. Once retained, we waste no time in taking action. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). We were thankful that he had our account . If you do, you must create a user name, or we will not post your comment. An extended payment plan for your payday loan may be available, subject to state restrictions. Prev Post "Currently in route to u right now," the text said. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. 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. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. Office of The Attorney General Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. 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! As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. Now, amid the coronavirus crisis, the lenders have come for their money. A True Merchant Cash Advance is NOT a loan. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. Michael called every month to see how we were doing and was alwaysavailable to answer questions or offer support. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. It is important to take note that the COJ laws have not changed in any other states only in NY so COJs can still be filed against you outside of New York. Many MCAs have personal guarantees which lead many business owners with little personal assets to file for personal bankruptcy. It became a cycle of death. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. Attorney General James Sues Predatory Lender That Threatened Violence In addition to potentially saving you money, retaining Dramer Law will save you time as we relieve you of the harassing and embarrassing collection calls you and your employees may get barraged with on a daily basis. 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. 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. If you are a business owner and want to file for personal bankruptcy, your obligation to pay back the advance will be discharged; however, the liability for the business remains. We never agree to anything without first consulting with you and getting your approval. When the business owners call to find out what is going on, they quickly find out that no progress has been made! 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. Opinions in comments that appear in this blog belong to the individuals who expressed them. What Happens if You Default on a Merchant Cash Advance? - Lane Law Most of the merchant cash advance lawsuits occur in New York even though businesses across the United States obtained funding from these companies. 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. "We're already seeing a decadelong decline in small businesses. Without truly understanding the risks, how can you make an educated decision as to whether or not debt settlement is going to be right for your business? However, they often come with high fees and confusing terms. 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. The merchant cash advance agreements typically allow for these remedies. Most Sincerely, Ken and Nicki K Highland, NY. 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. They can make all the difference when you're in a situation where you need access to money immediately. 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. "It's down a lot, more than 50 percent," she said. Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. Any questions I had were addressed rapidly and any messages I left were returned promptly. A lender is. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Among many other factors to be discussed range anywhere from: When you call our firm,we will want to know how and when your financial hardship began as well as what the current status is, to get a better understanding of what you are experiencing. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. Very pleased with the results. S.P. An official website of the United States government. If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! Hurt bad," one text said. 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. Runion concedes that he signed the documents that have created the problems. 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. "He more or less presented me the net cash I would receive and the payments. When they reached $70,000 a month, he had trouble paying his vendors. Search the Legal Library instead. In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. 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. Anne G. Brooklyn, NY 1-2-2017, I was very pleased with the legal services I received from the Dramer Law Firm regarding settling a debt collection matter with a very stubborn collection service J. V. Cobleskill, NY. Our managing the collection efforts on your behalf helps to ensure the finances of your business stay private, away from the ears of your employees who typically will worry about their job security and may start to search for different employment if they believe you are struggling. Many of them ask what we want to do?.. l want to know more about ,l have get the notes banking .to set me an order . (NBC News received no evidence that PowerUp, Itria or Biz2Credit had sent menacing messages to borrowers or had sent debt collectors to their homes, or had engaged in any other improper collection practice. A proposed class action lawsuit has been filed against Penn Capital Funding, MapCap Funding and those who run the merchant cash advance (MCA) companies over their alleged use of an apparent loophole in Connecticut law to collect upon unlawful debts and otherwise fraudulently obtain money. 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. 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. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. The complaint alleges that these practices violated the FTC Act. ", Full coverage of the coronavirus outbreak. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Keep up to date get updates with latest topics. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. Ive said it once, and Ill say it again you are greatly appreciated! This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back. Merchant cash advance companies provide funds to businesses in exchange for a percentage of their revenues, often in the form of daily withdrawals from the business's bank account until the obligation has been met. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. Loans are considered absolute and must be paid back with set terms and conditions. What makes our merchant cash advance settlement services stand out from the rest? He said the actions were dropped because they worked out payment plans. We analyze your current financial situation including your assets and liabilities as well as your current cash flow, allowing us to narrow down our services more specific to what you can afford. This has been a long journey and you have taken us through it just as you promised. My husband and I owed a lot of debt due to closing of our business, but we still tried to payoff debtors little by little. We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. 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. Our lawyers and certified debt arbitrators will discuss the Pros AND Cons of each different option, as debt settlement isnt the only option out there to choose from. Its an alternative form of financing unfamiliar to many small business owners. 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! The companies generally provide a predetermined amount of money to a business in exchange for future receipts. Forever. Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Is a Merchant Cash Advance (MCA) ruining your business cash flow? View Results from Our Merchant Cash Advance Relief Services. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. Until we got hit with a summons from the court ( for over 100K lawsuit). 12-14-17, They were very helpful. 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. He said the companies have almost killed his business. 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. ), "If you don't send money to me today you're done," said a recent text shared by a business owner. What a wonderful feeling to be out of debt at last!
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