You pay for our performance and thats what we do we perform! Search the Legal Library instead. Debt Settlement can be a great option for some business owners, but for others it can be horrible! 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. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. Is a Merchant Cash Advance Right for Your Business? Have you tried to refinance an MCA and were denied? 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. If they do provide legal advice, they are doing so illegally, and it may not be accurate! 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? 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! He is very professional and extremely helpful. In mid-2018, Runion, an oral surgeon, wanted to add a second location to his practice and had initial approval from a bank for financing. However, they often come with high fees and confusing terms. We do not want you to be harassed well take over the calls for you. Learn more about your rights as a consumer and how to spot and avoid scams. Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. Merchant Cash Advance Lawsuits - Global Legal Law Firm (Continue reading below to learn how we can help). Handled my debt in a month and cut it in half. You will be given all the facts you need, and then you will be given plenty of time to think things over. I am able to once again look others in their eyes. 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. The merchant cash advance agreements typically allow for these remedies. As a provider, you deserve to get paid for the cash you advance. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! Runion concedes that he signed the documents that have created the problems. "Normally we're usually really busy. 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. Most Sincerely, Ken and Nicki K Highland, NY. Comments and user names are part of the Federal Trade Commissions (FTC) public records system, and user names also are part of the FTCscomputer user recordssystem. In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. Heskin, who testified last year before Congress about the lenders' tactics, said one of his law partners found a disemboweled rat splayed atop his mailbox in front of his home. 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. The below options each have their own benefits and drawbacks. A recent case decision on March 16, 2017 in the Supreme Court of New York in Nassau County, titled IBIS Capital Group, LLC v. Four Paws Orlando LLC, states, in summary, the fact that payment or enforcement of a Merchant Cash Advance agreement rests upon a contingency for the payment schedule (of the funds coming into the account), rather than a true loan, in which it is essential to provide for repayment absolutely and at all events, it is not actually a loan, and therefore, is valid, even though it provides for a return in excess of the legal rate of interest. Highly recommended. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf. 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. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. Lines Of Credit, Business Loans, & Merchant Cash Advances . Sometimes called cash advances, payday loans are quick, simple, convenient loans with competitive rates and terms. 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. These actions cause collectors to seek other measures to collect, often meaning lawsuits. Search the Legal Library instead. Aggressive Business Lawyers at Affordable Rates 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 Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Thats a savings of $61, 000.500 , or a 70% discount off our balances. The Federal Trade Commission works to promote competition and protect and educate consumers. 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. Merchant Cash Advance Attorney Florida - Grant Phillips Law We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. 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. He didn't talk too much about how it was secured or the workings of it.". All this just to get you to sign on the dotted line. 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 show. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. 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. Runion said he told the cash advance companies that he didn't have the money to pay them. 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. 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. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. Suit Filed Against Merchant Cash Advance Companies - PYMNTS.com This is called a merchant cash advance. He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. Floral Park, NY. The FTC sued Yellowstone and its owners in 2020, and they agreed to settle. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. They advised me every step of the way through the difficult process of bankruptcy. 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. What a wonderful feeling to be out of debt at last! The best decision we could have made was to begin the debt settlement process. A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. Merchant Cash Advances can be discharged through bankruptcy. 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. 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 . Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Its okayweve got this! ! Susan F. Copaigue, NY. Most banks offer more conventional small business loans with favorable terms, but longer turnaround times. The advance company can enforce its claim on any collateral pledged to secure their funds through seizure or repossession of business assets. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Find the resources you need to understand how consumer protection law impacts your business. This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. Depend on fast response times. With an added personal guarantee, it gave recourse to the MCA lender to collect, even if the merchant account was not performing, thus additionally reducing the MCA purchasers risk of not being repaid. Sued for a Business Loan or Merchant Cash Advance? as well as any of your customers that pay you! We know what to say but more importantly, what NOT to say and we have the experience and know-how to get the job done. Are you getting hounded by collection calls that you want us to take over on your behalf? A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. Some companies' aggressive, even menacing, collection techniques are documented in video, recordings and emails provided to NBC News. FTC Alleges Merchant Cash Advance Provider Overcharged Small Businesses They are known to misrepresent their tremendous upfront fees or for just telling you not to worry about the fees because theyre all included in the monthly payment estimates. 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. Failure to do so is a violation of the FDCPA, and we will sue them for you. How to Defend Against Merchant Cash Advance Lawsuits As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. 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. I hope other staff in your office are as efficient and compassionate as Mike is. What Happens if You Default on a Merchant Cash Advance? - Lane Law 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. The FTC had previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. CALL TODAY for your FREE CONSULTATION and let us help you save your business today! The success fee helps ensure we are incentivized, so youll know we have your best interests in mind. 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! Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. 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. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. In our case there is no way we canpayoff everything. Click Here to be Directed to a separate page. New Jersey Attorney General settles lawsuit against merchant cash advance providers. Freeze your business's bank accounts. This saves time for you and eliminates any extra stress for you as time is money and being stress free is just as important as being debt free! Bob & I wish you a Happy, Healthy Holiday Season. 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. They will tell you that you only have to make one payment into an escrow account and theyll settle your balances for less making MCA debt settlement seem like a walk in the park. Lendmark Financial Services: Convenient Personal Loan Solutions Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Any email or phone call was returned immediately with answers to each question or concern we had . 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. 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. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. We have years of experience dealing with most Merchant Cash Advance Lenders. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. 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. Advance . Mike Thank you so much for your help. They were patient and very helpful with my case. I didnt feel rushed or like I was being blown off. 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. Under a typical deal, a business might receive $40,000 in exchange for agreeing to hand over $50,000 in future revenue over a few months. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets.

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