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. 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!! Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. 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. Our debt relief representatives will be sure you understand the cost benefits and will be sure to disclose our fees fully. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. We may routinely use these records as described in the FTCsPrivacy Act system notices. 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. 4 Best Ways to Get Out of a Merchant Cash Advance - Tayne Law Group trade references (of which some are your customers); bank statements (they will looks through your statements to see who pays you); or. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. 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. If instead of hiring an experienced Business Debt Relief Law Firm you opt to hire a regular debt settlement company to deal with your Merchant Cash Advance, they will NOT be able to give you legal advice. Michael Atleson, Attorney, FTC Division of Advertising Practices, Competition and Consumer Protection Guidance Documents. The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance exceeded 1,900%. The case is further summarized here. Runion concedes that he signed the documents that have created the problems. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. Your thoughts, ideas, and concerns are welcome, and we encourage comments. 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. 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. IE 11 is not supported. 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? Federal government websites often end in .gov or .mil. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. But there's nobody outside.". The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. A merchant cash advance, MCA for short, [] Read Now The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Is a Merchant Cash Advance (MCA) ruining your business cash flow? We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. When you work with us, you can. He is very professional and extremely helpful. Looking for legal documents or records? If you do, you must create a user name, or we will not post your comment. Many times, when we successfully get our clients out of debt, they still need assistance with other areas of their financial life. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. l want to know more about ,l have get the notes banking .to set me an order . Have you tried to refinance an MCA and were denied? A Merchant Cash Advance is not a set term as the purchaser is paid back as funds come into your merchant account. Mike Thank you so much for your help. This has been a long journey and you have taken us through it just as you promised. In some states, you may be able to fight it if you can prove any of the following: Thank you again for all your help Greg T. Long Island, NY. We expect commenters to treat each other and the blog writers with respect. April 2019: How Mulvaney undid consumer protections from predatory lenders. The below options each have their own benefits and drawbacks. Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. All settlements are represented as a percentage of the debt paid back. Federal government websites often end in .gov or .mil. 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. "Currently in route to u right now," the text said. We will work quickly and efficiently to bring a successful resolution to your situation. For example, a 40% settlement means that 40% of the debt is paid back and 60% is forgiven. ", Full coverage of the coronavirus outbreak. Opinions in comments that appear in this blog belong to the individuals who expressed them. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. 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. Those allegations are troubling enough, but RCG was just getting warmed up. Yellowstone Capital Refunds | Federal Trade Commission To file a detailed report about a scam, go to. Small businesses sued by Itria included a builder's company in Minnesota, a grocery in South Carolina, a Holiday Inn Express in Wyoming and a barbecue joint in Alabama, court filings show. Soon after he received the money, the amount of the repayments began rocketing, Runion said. We wouldnt of call if we know what to do. If I had any questions or concerns they would answer any questions very quickly and patiently. Installment Loans, Payday Loans & Cash Advances | Check `n Go Debt Settlement can be a great option for some business owners, but for others it can be horrible! We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. Our MCA Settlement Attorneys and debt relief negotiators have combined decades of experience in contract renegotiation. He was kind, calming and very thorough. Commissioner Rohit Chopra issued a statement. Merchant Cash Advance companies are aggressive and do not wait to take action when a business defaults on their product. Loans are considered absolute and must be paid back with set terms and conditions. You should never settle for less when trying to settle for less! 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. We never agree to anything without first consulting with you and getting your approval. We research all over the internet and called many law firms and layers. I can not thank you enough for giving me freedom from debt. CALL TODAY for your FREE CONSULTATION and let us help you save your business today! Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. 1-21-16. The FTC sued Yellowstone and its owners in 2020, and they agreed to settle. For how long? Most of the debt was in my name so I contacted Dramer Law . 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. We can negotiate to lower your daily or weekly payments which will extend the terms of your payback. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. The MCA companies will almost always move to sue the business immediately. Office of The Attorney General Other companies and law firms offer debt relief we specialize in it! From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. Dial 516-670-5165 right away. Any questions I had were addressed rapidly and any messages I left were returned promptly. The companies generally provide a predetermined amount of money to a business in exchange for future receipts. Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. They can make all the difference when you're in a situation where you need access to money immediately. SoloSuit can help you take a stand and win in court. At that point, the business owners then fire the debt settlement company and hire us for real help. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. 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. 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. Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. In all cases, the businesses had stopped paying in March, although Itria Ventures said some of the defaults dated back months before the coronavirus clobbered operations and governments required that many nonessential companies close. Be well. Mary R. Bayshore, NY 4-30-2018, I would highly recommend Dramer Law for your debt settlement needs. They were able to reduce the money I owed to less than the original amount. 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 (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. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. Get to keep our house and car, even our credit score went up. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. All settlements are represented as a percentage of the debt paid back. There is no fee charged to you if we do not win your case, and if we do win, you can win up to $1,000 per violation, and the collector in violation will pay our attorney fees for you. Michael, my principal liaison from day one has been very professional, available, applied, assiduous, and reassuring throughout this relationship; it is hard not to state it in such glowing, when it is what it is. "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. Need an experienced Merchant Cash Advance attorney? receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf. "I don't see how companies that are collecting future receipts can be litigating against companies that don't have any receipts," Indelicato said. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. 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. The merchant cash advance agreements typically allow for these remedies. The success fee helps ensure we are incentivized, so youll know we have your best interests in mind. The site is secure. Granted, they have specific clauses in their agreements to protect themselves from you closing your merchant account purposely to avoid paying, but if its open and just not receiving funds, nothing should be paid to them if it is a true MCA. 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. 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. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. 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. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. For more information on how the FTC handles information that we collect, please read our privacy policy. The case against Jonathan Braun is pending. 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. New Jersey Attorney General settles lawsuit against merchant cash advance providers. 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. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. I want to say, he immediately put my mind at ease. 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. A few years ago I could not imagine a way out of this hole that I dug myself. Lines Of Credit, Business Loans, & Merchant Cash Advances . I hope other staff in your office are as efficient and compassionate as Mike is. 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. 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. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Lone Spur Caf, a six-restaurant chain in Arizona and Colorado, was also sued by Itria on March 19, with a demand for $282,000. The most common arrangements between these companies and small business borrowers aren't technically loans, and therefore their terms and the companies offering them aren't regulated. 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. We would highly recommend their services for debt reduction and settlement rate negotiations. John & Pat T. Valatie, NY 5-30-2017, Thanks for being so helpful i am glad for your help I hope I can send some client your way thanks so much Audrey. 'I'm Ruined': Litigation Trend Takes Aim at Merchant Cash Advance Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. The advance company can enforce its claim on any collateral pledged to secure their funds through seizure or repossession of business assets. 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. Three federal rulings scrutinize the business model on which merchant cash. Please call for your free consultation to speak to one of our trained professionals. "You will end up hurt. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Based on your current income and your financial hardship, we will determine which course of action will work best for 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). I literally was paralyzed by fear and could not even face the mail. Global Legal Law Firmrepresents companies in merchant cash advance lawsuits to collect on underperforming or unpaid debts. On March 19, as COVID-19 spread across the U.S., triggering a national emergency, a merchant cash advance company sued Indelicato and his wife, Alice. Have you spotted questionable financing offers that target small businesses? 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. It is our goal to help you find the right funding solution for your unique needs and situation. Prev Post 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. Thank you for helping me. Find the resources you need to understand how consumer protection law impacts your business. We'll get back to you within 5 . "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.". Report it to the FTC. The complaint was filed in the U.S. District Court for the Southern District of New York. "On some of our loans, we were paying over 200 percent. Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. The first missed payment invokes the lender's right to pursue you and your business. They may also help you negotiate for debt relief or a settlement plan. I never felt at anytime like I was getting less than 110% from them. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. 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. The biggest . The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. Its basically free money! 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. Based in Doral, Florida, Everest Business Funding is an online provider of loans and merchant cash advances. Find legal resources and guidance to understand your business responsibilities and comply with the law. Ive said it once, and Ill say it again you are greatly appreciated! It was that unfront honesty and eagerness that sealed the deal for me. Michael was always professional and courteous as well as efficient . In this merchant cash advance FAQ, you'll learn about how they work, the repayment terms you'll want to watch out for and how to protect yourself and your business from predatory practices. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? Michael explained the process in detail and even though I was quite hesitate I feel this was the best option for me. 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. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! Runion said he told the cash advance companies that he didn't have the money to pay them. 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. Their price is very reasonable. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit