merchant cash advance lawsuit

New Jersey Attorney General settles lawsuit against merchant cash advance providers. 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. Thank you from the bottom of our hearts for all of your efforts in getting us through this! A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. ", When merchants fall behind on their payments, some direct lenders send threatening emails and texts, owners and their lawyers say. We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. 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! Florida Court Affirms That Merchant Cash Advance Product Not Subject to We analyze your current financial situation including your assets and liabilities as well as your current cash flow, allowing us to narrow down our services more specific to what you can afford. Any questions I had were addressed rapidly and any messages I left were returned promptly. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. Overall, though, Im very happy. Mike S. Baldwin, NY 8-3-15, I was so happy to have been represented by the law firm of Kenneth H. Dramer. They were able to reduce the money I owed to less than the original amount. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. Very pleased with the results. S.P. Find the resources you need to understand how consumer protection law impacts your business. This fee is usually expressed as a factor rate. l want to know more about ,l have get the notes banking .to set me an order . ! Susan F. Copaigue, NY. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. In 2019, it provided an estimated $19 billion in funding. 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. 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)! UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back. Loans are considered absolute and must be paid back with set terms and conditions. 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. 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? Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. We will take our time with you and help evaluate what your best course of action should be. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. We are available long hours but should we happen to be unavailable for any reason we pride ourselves on returning calls and emails right away, not several days later like most attorneys. Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. 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. . On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. "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. Michael was always professional and courteous as well as efficient . They were patient and very helpful with my case. 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. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? 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. Soon after he received the money, the amount of the repayments began rocketing, Runion said. We offer all debt relief options and we service our clients like family. Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Have you spotted questionable financing offers that target small businesses? It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. Attorney General James Sues Predatory Lender That Threatened Violence A few years ago I could not imagine a way out of this hole that I dug myself. FTC takes action against merchant cash advance providers Most of the debt was in my name so I contacted Dramer Law . 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. "You will end up hurt. It is your choice whether to submit a comment. Fast funding for your financial goals. Keep up to date get updates with latest topics. We never agree to anything without first consulting with you and getting your approval. Once retained, we waste no time in taking action. Yellowstone Capital Refunds | Federal Trade Commission Merchant Cash Advance - Grant Phillips Law PLLC Bob & I wish you a Happy, Healthy Holiday Season. The FTC says the defendants also forced people to sign confessions of judgment, which allowed the defendants to go straight to court for an uncontested judgment in case of an alleged default, leading to the unlawful seizure of business and personal assets. 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. Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. He said the companies have almost killed his business. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! In a return email, he said the firm had decided to stand down for the moment. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. Merchant Cash Advance Attorney Florida - Grant Phillips Law We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! We have years of experience dealing with most Merchant Cash Advance Lenders. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. At the time of underwriting or any time since then, if you have provided your funder with: then you can assume that within a day or two of filing a UCC lien against you, your funders will send a copy of the UCC lien to anyone they know of that pays you! The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. 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. 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. We wouldnt of call if we know what to do. But there's nobody outside.". Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. You can further research this case here. Thanks! JC, Queens, NY. The only source of capital he could find was from merchant cash advance companies. He provided a photo to NBC News. They completely turned around a very trying situation for me. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. 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. 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. Merchant Cash Advance Relief Attorneys | The Law Offices of Kenneth H 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. However, they often come with high fees and confusing terms. These actions cause collectors to seek other measures to collect, often meaning lawsuits. 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. If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! There is no obligation to enroll, so dont delay. 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. In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. 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. 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. Michael called every month to see how we were doing and was alwaysavailable to answer questions or offer support. At that point, the business owners then fire the debt settlement company and hire us for real help. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. 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. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. The .gov means its official. Worked with Michael who was so patient and was very understanding. A Merchant Cash Advance is not a set term as the purchaser is paid back as funds come into your merchant account. Opinions in comments that appear in this blog belong to the individuals who expressed them. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. It is true that a judgment (whether entered by COJ, default, or awarded) can also be used to freeze your incoming receivables, however, most funders do not use judgments to freeze receivables (especially now that COJs in NY are banned against out of state business owners) so filing a UCC lien is a much quicker tool! In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Many random phones calls later, we were fortunate to come acrossed Mike, he has explained to us bankruptcy doesnt mean we will lose our house or car. Lendmark Financial Services: Convenient Personal Loan Solutions ), "If you don't send money to me today you're done," said a recent text shared by a business owner. Merchants like Indelicato have been hammered by the coronavirus outbreak. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. 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. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. 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. We do not only offer one path, as no one process can solve everyones needs. Report it to the FTC. Please call for your free consultation to speak to one of our trained professionals. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! 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. 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. Merchant Cash Advances can be discharged through bankruptcy. 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. 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. Learn more about your rights as a consumer and how to spot and avoid scams. Is A Merchant Cash Advance Right For Your Business? - Forbes When the business owners call to find out what is going on, they quickly find out that no progress has been made! We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Michael explained the process in detail and even though I was quite hesitate I feel this was the best option for me. Merchant cash advance operators settle FTC charges for bilking small Pravati Capital embroiled in multiple disputes with clients. Mike spent time communicating with me either by e-mail or phone. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. 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. 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 . Merchant cash advances have grown in popularity in recent years, particularly for businesses that cannot get small-business loans from traditional banks. We were thankful that he had our account . 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. 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. We do not want you to be harassed well take over the calls for you. Before sharing sensitive information, make sure youre on a federal government site. "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. 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. Its an alternative form of financing unfamiliar to many small business owners. We may routinely use these records as described in the FTCsPrivacy Act system notices. We work to advance government policies that protect consumers and promote competition. Any email or phone call was returned immediately with answers to each question or concern we had . Cash Advance Firm to Pay $9.8M to Settle FTC Complaint It Overcharged 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. Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. A True Merchant Cash Advance is NOT a loan. Merchant Cash Advances can be discharged through bankruptcy. Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. He is very professional and extremely helpful. There is no obligation to retain our services. When they reached $70,000 a month, he had trouble paying his vendors. "You can't have people freezing assets and demanding payments at a time like this. "We have no intention of pursuing this matter at the present time," Feldman wrote. You will be given all the facts you need, and then you will be given plenty of time to think things over. Clients Cry Foul Over Litigious Litigation Finance Company (4) 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. 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. "I don't see how companies that are collecting future receipts can be litigating against companies that don't have any receipts," Indelicato said. The case is further summarized here. North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. "Normally we're usually really busy. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. When disputes arise about these cash advances, a lawsuit may occur. Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Merchant cash advances are a short-term form of business financing. Get to keep our house and car, even our credit score went up. 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. Excellent, excellent service. 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. 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. 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.

When Will Grand Parkway 99 Be Finished, Allen Collins Daughters Today, Va Community Care Billing, Cullman County Arrests July 2019, Reproduction Gone With The Wind Lamps, Articles M