We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. Do you want to reduce your payments with our cash advance repayment options? A True Merchant Cash Advance is NOT a loan. 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. According to the complaint, the defendants told business owners that no personal guaranty of collateral was required and then put personal collateral requirements in their contracts. 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. I wasnt even their client at this point and they were already going above and beyond. He is very professional and extremely helpful. "You will end up hurt. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! The comments posted on this blog become part of the public domain. Our mortgage negotiation services are offered a fee structure as such that you pay part of the fee when retaining our firm and part of the fee only if were successful. Many companies do nothing for the high fees they charge. 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. Most of the merchant cash advance lawsuits occur in New York even though businesses across the United States obtained funding from these companies. They were so helpful at a very difficult financial time in my life. 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? 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. Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. Prev Post Learn more about your rights as a consumer and how to spot and avoid scams. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week. The complaint was filed in the U.S. District Court for the Southern District of New York. The .gov means its official. We do not only offer one path, as no one process can solve everyones needs. If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! We were thankful that he had our account . 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. 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. When Debt is the Problem We Have the Answers! 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. Until we got hit with a summons from the court ( for over 100K lawsuit). If funds do not come into your merchant account, the MCA company should not collect. As a provider, you deserve to get paid for the cash you advance. 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 Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. 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. "On some of our loans, we were paying over 200 percent. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". Some business owners said they are being swamped with new texts and emails offering funds. 6-13-16, I think you and the company basically do a good job and I appreciate it. We research all over the internet and called many law firms and layers. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. We are so pleased with the results.I know we could not have been successful without their help. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. If I had any questions or concerns they would answer any questions very quickly and patiently. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Looking for legal documents or records? 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 wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. We have heard many horror stories. IE 11 is not supported. In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. You will be given all the facts you need, and then you will be given plenty of time to think things over. Arverne, NY 2-6-17, Happy new year! Readily responds to questions and concerns in detail. North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! It was that unfront honesty and eagerness that sealed the deal for me. Your promptness, efficiency, and trustworthiness have always been beyond my imagination. A screenshot of a text sent to a small business owner. 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. "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. "He more or less presented me the net cash I would receive and the payments. The complaint also cites examples of businesses being left with bank overdraft fees as a result of the unauthorized withdrawals. The Commission vote authorizing the staff to file the complaint was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating. A few years ago my husband and I had accrued entirely too much debt and no matter how hard we worked or how much we tried, we were unable to keep up with our bills and making the minimum payments was getting us nowhere. This is called a merchant cash advance. Thank you again for all your help Greg T. Long Island, NY. Highly recommended. The underlying lawsuit involved several commonly litigated issues in the MCA space, and the court unambiguously came down on the side of the MCA company. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! Their price is very reasonable. We work quickly on your behalf as the longer you delay with a deed in lieu of foreclosure, the more fees your lender will charge. Merchant cash advances are a short-term form of business financing. Do you need help with a Merchant Cash Advance lawsuit or legal issues? 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. "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." If the merchants fall behind on their payments, some lenders send threatening emails and texts and even pay visits to borrowers' homes to try to collect, lawyers and small business owners say. 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. 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. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit I wish everyone would be like that. Its basically free money! If you do, you must create a user name, or we will not post your comment. Thank you from the bottom of our hearts for all of your efforts in getting us through this! I would highly recommend this firm to anyone going through financial difficulty and need good advise. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Each option will have its own savings potential. When you stop paying on your merchant cash advances, a merchant cash advance lawsuit will quickly be filed against you and your business. The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. You never made me feel harried, pressured or overly anxious about paying off my bills. Florida Court Affirms That Merchant Cash Advance Product Not Subject to sincerely Mr & Mrs. Vogel, NY 12-15-14. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. I highly recommend them. Jamie M. Seaford, NY 5-30-2017, I just wanted you to know it has been an absolute pleasure working with you. Many of them ask what we want to do?.. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. 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. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. Debt Settlement can be a great option for some business owners, but for others it can be horrible! We are very satisfied with the work and support provided by Michael Sininsky and The Law Offices of Kenneth H. Dramer. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. For instance, the filings can be entered without a hearing or review by a judge. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. 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. 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. SoloSuit can help you take a stand and win in court. We have years of experience dealing with most Merchant Cash Advance Lenders. If they do provide legal advice, they are doing so illegally, and it may not be accurate! 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. Are your accounts frozen or have liens been placed on your assets? Based on your current income and your financial hardship, we will determine which course of action will work best for you. (The suit is now on hold.). 4 Best Ways to Get Out of a Merchant Cash Advance - Tayne Law Group A small-fleet owner received this text from a merchant cash advance provider. Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. Since our clients dont have tons of money to spare like attorneys that practice in other areas of law, we charge low fees making our services affordable for anyone that needs help. Thats a savings of $61, 000.500 , or a 70% discount off our balances. The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. New Jersey Attorney General settles lawsuit against merchant cash A regular debt settlement company can offer one thing that our Debt Relief Attorneys dont OUTRAGEOUS FEES typically charged upfront regardless if they perform or not. A similar situation regarding further recourse to the Merchant Cash Advance purchaser came about in the case Merchant Funding Services, LLC, v. Volunteer Pharmacy Inc. which dealt with the signing of a Confession of Judgment (COJ) in the MCA contract. 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. 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. The MCA companies will almost always move to sue the business immediately. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. 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. 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 only source of capital he could find was from merchant cash advance companies. 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. 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. All this just to get you to sign on the dotted line. Forever. 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. Keep up to date get updates with latest topics. 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. The case will be decided by the court. The below options each have their own benefits and drawbacks. 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. All settlements are represented as a percentage of the debt paid back. Lines Of Credit, Business Loans, & Merchant Cash Advances Penn Capital Funding, MapCap Funding Hit with Class - Class Action 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. 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. He said the actions were dropped because they worked out payment plans. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. 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. To read about this case click here. A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". "Normally we're usually really busy. Runion said he told the cash advance companies that he didn't have the money to pay them. Global Legal Law Firmrepresents companies in merchant cash advance lawsuits to collect on underperforming or unpaid debts. When they reached $70,000 a month, he had trouble paying his vendors. Dial 516-670-5165 right away. 'I'm Ruined': Litigation Trend Takes Aim at Merchant Cash Advance Beat Everest Business Funding in Court | SoloSuit Blog 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. 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.. We wouldnt of call if we know what to do. 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. as well as any of your customers that pay you! Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. The first missed payment invokes the lender's right to pursue you and your business. The problem is, you will NOT receive a refund of any fees paid to the debt settlement company and your business is now far worse off than it was! The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Recommended! Alex M. Floral Park, NY 12-24-14, I would like to open by saying how grateful I am to Michael Sininsky for helping me with my legal problem. Advance . 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. 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. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. Depend on fast response times. Yellowstone Capital Refunds | Federal Trade Commission Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. Debt relief is an important decision, and we wont rush you! We can defend you in court if you were sued to buy time and even to successfully defend a judgment from being entered if prove your MCA to be a loan rather than an actual advance. Merchant Cash Advances can be discharged through bankruptcy. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. ), "If you don't send money to me today you're done," said a recent text shared by a business owner. Perhaps I will be like that one day (in another life). Peter L Valley Stream, NY 3-2-17, When I initially called, I spoke to Mike. Like most people bankruptcy never crossed our mind. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. Looking for legal documents or records? They were patient and very helpful with my case. Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. They were able to reduce the money I owed to less than the original amount. Need an experienced Merchant Cash Advance attorney? 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. 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. 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. We would like to say Michael Sininsky is an asset to your company . From the initial consultation and throughout the entire process ,Michael patiently and fully explained everything. Is A Merchant Cash Advance Right For Your Business? - Forbes The offers are alluring to owners who often operate on the edge and are strapped for cash. As couple we are able keep certain amount of assets. I/we started out with $87,555.84 total debt and ended up paying back $26,020.71. 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. 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? 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. I am able to once again look others in their eyes. You will be assigned a specific member of our team that will be in constant contact with you throughout the process. We do not want you to be harassed well take over the calls for you. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. 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. 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. As in any industry, some of the companies' practices are more problematic than others. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. Other companies and law firms offer debt relief we specialize in it! 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. 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. Its an alternative form of financing unfamiliar to many small business owners. He explained your retainer fee; that costs for filing papers; phone calls, and other incidentals, would be deducted from that fee and, if any fees were due at the end of the process, I would be liable for those additional fees. Keep in mind the greater the downsides a choice may have the greater the potential for savings. 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. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. The .gov means its official. 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 businesss bank account until the obligation has been met. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Hurt bad," one text said.

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