merchant cash advance lawsuit

It's an alternative form of financing unfamiliar to many small business owners. 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. Your promptness, efficiency, and trustworthiness have always been beyond my imagination. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? If I have any other legal issues that fall within the area in which their office practices, its literally a no brainer for me, I wouldnt go anywhere else. Teresa J., Bronx NY. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. Merchant cash advances are a form of financing in which a company provides money to a small business up front in exchange for a larger amount repaid through daily automatic payments. 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. Have you spotted questionable financing offers that target small businesses? Penn Capital Funding, MapCap Funding Hit with Class - Class Action 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! Its basically free money! As I mentioned before the only thing is Im interested to see when the payments Ive made start showing up on my credit report as its still very low. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. You never made me feel harried, pressured or overly anxious about paying off my bills. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Handled my debt in a month and cut it in half. The biggest . Runion said he told the cash advance companies that he didn't have the money to pay them. 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. The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. Be well. Mary R. Bayshore, NY 4-30-2018, I would highly recommend Dramer Law for your debt settlement needs. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. 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. 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? Hire A Real Law Firm instead of a Debt Relief Company, Merchant Cash Advances and Filing Bankruptcy, The amount owed to MCA and other obligations, Past, Current, & Future Cash Flow of the business, chance, pretty much stressed out on my options, I stumbled on, but very satisfied with my collaboration with Dramer. Now half year later we are debt free, no need to worry from phone calls from debts collectors. Dont use trial and error trying to figure this out on your own with thousands of your dollars at stake when errors can be costly! Do you want to reduce the amount of the principal balance that you owe with our merchant cash advance settlement negotiations? 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. Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. This has been a long journey and you have taken us through it just as you promised. To read about this case click here. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. Very pleased with the results. S.P. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Report it to the FTC. Hurt bad," one text said. 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. Debt relief is an important decision, and we wont rush you! We can negotiate to lower your daily or weekly payments which will extend the terms of your payback. Ive said it once, and Ill say it again you are greatly appreciated! Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. MCAs are not considered loans , so they aren't subject to most of the laws that apply to traditional business loans. Beat Everest Business Funding in Court | SoloSuit Blog If I had any questions or concerns they would answer any questions very quickly and patiently. We were thankful that he had our account . 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. As in any industry, some of the companies' practices are more problematic than others. Search the Legal Library instead. "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. 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. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. You should never settle for less when trying to settle for less! "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." We would like to say Michael Sininsky is an asset to your company . By Michael R. Guerrero & John Sadler on January 13, 2023. The first missed payment invokes the lender's right to pursue you and your business. What a wonderful feeling to be out of debt at last! 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. Hes truly an asset to your business. Get to keep our house and car, even our credit score went up. If funds do not come into your merchant account, the MCA company should not collect. 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. 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. As a provider, you deserve to get paid for the cash you advance. Arverne, NY 2-6-17, Happy new year! Not only did you help me do this, but I have learned some other valuable lessons that are priceless like dont spend beyond your means and if you dont have cash for it dont buy it. 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. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". A merchant cash advance is a type of financing that allows small business owners to access funds quickly. Do you need help with a Merchant Cash Advance lawsuit or legal issues? 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. Before sharing sensitive information, make sure youre on a federal government site. 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. Are you getting hounded by collection calls that you want us to take over on your behalf? What Happens if You Default on a Merchant Cash Advance? - Lane Law "It's down a lot, more than 50 percent," she said. They may also help you negotiate for debt relief or a settlement plan. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. Hi Michael, Just wanted yo drop you a note in appreciation for all you have done for Bob & I in regard to the Capital One situation. We'll get into all of the specifics in the article below, but in most cases, when a business defaults on an MCA, the contract states that the MCA lender can immediately begin to: File a collection lawsuit. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. I was initially hesitant to enter into any debt settlement program but now, without hesitation, I will say it was the best decision I could have made . Our debt relief representatives will be sure you understand the cost benefits and will be sure to disclose our fees fully. 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. Thank you again for all your help Greg T. Long Island, NY. Opinions in comments that appear in this blog belong to the individuals who expressed them. All this just to get you to sign on the dotted line. The Commission vote authorizing the staff to file the complaint was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating. 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. He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. 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! 12-14-17, They were very helpful. Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. You pay for our performance and thats what we do we perform! The FTC is sending 7,731 checks totaling more than $9.7 million to small businesses who were harmed by Yellowstone Capital, a merchant cash advance company that withdrew money from customer bank accounts without permission. As couple we are able keep certain amount of assets. 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. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. 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. 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. 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. 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. I can not thank you enough for giving me freedom from debt. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Installment Loans, Payday Loans & Cash Advances | Check `n Go Find the resources you need to understand how consumer protection law impacts your business. Find legal resources and guidance to understand your business responsibilities and comply with the law. We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. 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.

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