merchant cash advance lawsuit

Florida Court Affirms That Merchant Cash Advance Product Not Subject to Highly recommended. These estimates they will give you are known for setting unrealistic expectations as they will make your potential savings out to be more significant than what their actual results tend to yield. How to Defend Against Merchant Cash Advance Lawsuits But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. You never made me feel harried, pressured or overly anxious about paying off my bills. 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. Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. l want to know more about ,l have get the notes banking .to set me an order . 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. If you took out a Merchant Cash Advance of any other business loan or line of credit, then you have signed away UCC Lien rights to your funder. To file a detailed report about a scam, go to. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. 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. As in any industry, some of the companies' practices are more problematic than others. Mike Thank you so much for your help. 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)! FTC takes action against merchant cash advance providers Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. If you do not have funds for either a payment plan or settlement, fighting the lawsuit will buy you time and can even prevent a judgment from being entered against you and your business altogether. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. Merchant Cash Advance Attorney Florida - Grant Phillips Law Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. You will be assigned a specific member of our team that will be in constant contact with you throughout the process. You will be given all the facts you need, and then you will be given plenty of time to think things over. When you work with us, you can. 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. I wish everyone would be like that. 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. Its okayweve got this! Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. SoloSuit can help you take a stand and win in court. 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. 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. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. 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! When Debt is the Problem We Have the Answers! Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. 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. Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. If funds do not come into your merchant account, the MCA company should not collect. 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. We offer many different services for those struggling with debts including Business Debt Relief, Mortgage Relief, Tax Relief, & Student Loan Relief. Nothing will be hidden from you as we are a full disclosure law firm. 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. 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. This can be said for ANY service we offer from negotiations to litigation to bankruptcy. To read about this case click here. 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. Now half year later we are debt free, no need to worry from phone calls from debts collectors. We would like to say Michael Sininsky is an asset to your company . ), "If you don't send money to me today you're done," said a recent text shared by a business owner. Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit. We are very satisfied with the work and support provided by Michael Sininsky and The Law Offices of Kenneth H. Dramer. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. If they do provide legal advice, they are doing so illegally, and it may not be accurate! Lines Of Credit, Business Loans, & Merchant Cash Advances . All of our client relationships are One on One. Merchant Cash Advance Lawsuit - Business Debt Law Group 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. 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. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. An official website of the United States government. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street. Their price is very reasonable. 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). 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. 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. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. 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. He was kind, calming and very thorough. . Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. The companies generally provide a predetermined amount of money to a business in exchange for future receipts. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. 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. Equally appreciative is the post-resolution services and relationship that Dramer, Retain Our Law Firm and Let the Savings Begin, Debt Collection Violation Lawsuit Results. Getting out of that debt was like taking a huge weight off my shoulders. Cory K. 4-20-15, Nicki and I are ecstatic, she is so happy she is in tears! We do not want you to be harassed well take over the calls for you. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. We do not offer any services that arent strictly related with clients that are struggling financially so our clients have unique needs, compared to those of other law firms, that we can cater to. Any email or phone call was returned immediately with answers to each question or concern we had . What to Do When You Can't Pay a Merchant Cash Advance from Blursoft We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. Lawsuits are especially great if you used a broker to obtain funding. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. 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. 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. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. 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. 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? According to the FTC, when small business owners sought capital, RCG formerly known as Richmond Capital Group lured them in with fast talk and supposedly sweet terms for what are called merchant cash advances. Click Here to be Directed to a separate page. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. "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. Merchant cash advances are a form of financing in which the defendants provide money to a small business up front in exchange for a larger amount repaid through daily automatic payments. This is called a merchant cash advance. The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. A lender is. 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. They will go over each option that will make sense for your situation and will be sure to discuss in detail the pros and cons of each. We serve clients in English & Spanish. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. 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. Put our experiencedMerchant Cash Advance Settlement Attorneysto work for you. 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. Our MCA Settlement Attorneys and debt relief negotiators have combined decades of experience in contract renegotiation. Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. According to the, In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced. "It's down a lot, more than 50 percent," she said. 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. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. Thank you for helping me. They do not belong to or represent views of the Federal Trade Commission. We never agree to anything without first consulting with you and getting your approval. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. Many MCAs have personal guarantees which lead many business owners with little personal assets to file for personal bankruptcy. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. Bob & I wish you a Happy, Healthy Holiday Season. We work to advance government policies that protect consumers and promote competition. Small businesses have borrowed billions from unregulated merchant cash advance companies. Runion said he told the cash advance companies that he didn't have the money to pay them. Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. 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. New York Merchant Cash Advance Attorney | Jacovetti Law, P.C. Its basically free money! We will work quickly and efficiently to bring a successful resolution to your situation. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! The repayment was not contingent upon funds coming into the merchant account, causing it to be a loan and therefore the rate charged, which was calculated to be roughly 180%, was in fact deemed usurious and thus the contract was voided. "You can't have people freezing assets and demanding payments at a time like this. The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. You can further research this case here. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Debt relief is an important decision, and we wont rush you! Each option will have its own savings potential. Federal government websites often end in .gov or .mil. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability.

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