merchant cash advance lawsuit

In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. During the entire process, he and his team were able to handle communications with the creditors, and successfully negotiate the terms and balances on my accounts. l want to know more about ,l have get the notes banking .to set me an order . Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! We have worked hard over the years to earn the reputation we have by giving honest advice to those in need rather than the advice that benefits our bottom line! receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf. We offer all debt relief options and we service our clients like family. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. The Merchant Capital decision is very good news for MCA companies doing business with Florida merchants. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. Im so relieved. 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)! Some business owners said they are being swamped with new texts and emails offering funds. 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. 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 Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Thank you again for all your help Greg T. Long Island, NY. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. Bankruptcy was the best choice we made and the cheapest way out. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! 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. I can not thank you enough for giving me freedom from debt. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". IE 11 is not supported. Based on your current income and your financial hardship, we will determine which course of action will work best for you. In the case of some Merchant Cash Advances, the profit made by the MCA purchaser can range from 100% to 200% or even higher, which would undoubtedly be usurious by most states standards if it were deemed to be a loan. Overall, though, Im very happy. Mike S. Baldwin, NY 8-3-15, I was so happy to have been represented by the law firm of Kenneth H. Dramer. 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. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. 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. Now, amid the coronavirus crisis, the lenders have come for their money. This step is critical in any of our processes as we ensure that whatever service we recommend will be within your budget and therefore youre more likely to succeed. 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. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. The site is secure. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. In addition, the complaint alleges that for years Yellowstone deceived potential customers about the amount of money they would receive, with the amount shown on the contract not reflecting additional fees that would be deducted. We would like to say Michael Sininsky is an asset to your company . Let's break down what this MCA looks like if the provider deducted 10% of your monthly credit card sales until you repaid the full $70,000 based on different revenue amounts: MCA details. 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!! An official website of the United States government. That must change, Chopra said. 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.. Michael explained the process in detail and even though I was quite hesitate I feel this was the best option for me. These actions cause collectors to seek other measures to collect, often meaning lawsuits. ", Full coverage of the coronavirus outbreak. We can convert the factoring method of your calculated payments, convert payments from daily or weekly withdrawals to monthly, etc. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. Some companies' aggressive, even menacing, collection techniques are documented in video, recordings and emails provided to NBC News. Bronx, NY 11-24-15 review posted on Yelp. "You will end up hurt. 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. Most banks offer more conventional small business loans with favorable terms, but longer turnaround times. 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! You should never settle for less when trying to settle for less! ! Susan F. Copaigue, NY. Pravati Capital embroiled in multiple disputes with clients. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. A lender is. The FTC sued Yellowstone and its owners in 2020, and they agreed to settle. This COJ caused further recourse and hence, was deemed to be a loan rather than an actual advance, thus voiding the contract. Most of the merchant cash advance lawsuits occur in New York even though businesses across the United States obtained funding from these companies. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! Aside from treating you with the upmost care possible, this means you wont have to deal with multiple people and re-explain your situation to a different person each time you call. 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. Before sharing sensitive information, make sure youre on a federal government site. Highly recommended. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. The merchant cash advance agreements typically allow for these remedies. 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. Runion said the companies that advanced him cash have persuaded an insurer holding $40,000 in reimbursements for procedures he had already completed to send the money to the advance company, not to Runion. If you have multiple lenders, the first to obtain a judgment puts themselves in a priority position to try and garnish bank accounts or levy against your assets. What makes our merchant cash advance settlement services stand out from the rest? He didn't talk too much about how it was secured or the workings of it.". Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. Do you want to reduce your payments with our cash advance repayment options? All settlements are represented as a percentage of the debt paid back. 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. "We're already seeing a decadelong decline in small businesses. But there's nobody outside.". They were able to reduce the money I owed to less than the original amount. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. CALL NOW FOR A FREE CONSULTATION and one of our advisors will be there to get you started on your path to financial freedom. All settlements are represented as a percentage of the debt paid back. It was that unfront honesty and eagerness that sealed the deal for me. Merchant cash advances are a short-term form of business financing. Three federal rulings scrutinize the business model on which merchant cash. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. 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. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. 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. 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. 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. To file a detailed report about a scam, go to. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. If funds do not come into your merchant account, the MCA company should not collect. For example, if A+ Construction Co gets an advance of $10,000 and pays back 20% of their sales with a 1.35-factor rate, they will pay back about $13,500 by the end of the eight weeks. To secure the financing, business owners must provide documents detailing their recent sales and identifying their business partners, including their customers, and the amounts they owe, known as accounts receivable. I literally was paralyzed by fear and could not even face the mail. Most of the debt was in my name so I contacted Dramer Law . In some cases, Yellowstone would only refund this money when businesses complained, and even then the refunds could take weeks or months, leaving small businesses without needed cash on hand. 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. The MCA companies will almost always move to sue the business immediately. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. Its okayweve got this! Advance . An email to PowerUp requesting comment received no response. Find legal resources and guidance to understand your business responsibilities and comply with the law. 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. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. At that point, the business owners then fire the debt settlement company and hire us for real help. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Have you spotted questionable financing offers that target small businesses? The agreements are enforceable contracts the borrowers have agreed to, lawyers say, but some of the aggressive collection practices, such as visiting borrowers' homes, aren't legal, they contend. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Arverne, NY 2-6-17, Happy new year! 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. On March 23, Kayla Kight, a server at a Lone Spur in Prescott, Arizona, told NBC News that hers was the only restaurant in the group open for business and that it was just providing takeout. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! All this just to get you to sign on the dotted line. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. It is our goal to help you find the right funding solution for your unique needs and situation. Any representative that will speak with you will have a minimum of 10 years experience. 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. Thats a savings of $61, 000.500 , or a 70% discount off our balances. We will be in touch with you throughout the process to keep you informed and are available when you need us. You will be given all the facts you need, and then you will be given plenty of time to think things over. "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. It is your choice whether to submit a comment. The merchant cash advance companies often demand that borrowers also pay attorneys' fees, which can be 25 percent to 33 percent of the balance due under a borrower's agreement, documents.
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