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. Fast funding for your financial goals. Michael Atleson, Attorney, FTC Division of Advertising Practices, Competition and Consumer Protection Guidance Documents. 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)! 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. 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'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. Click Here to be Directed to a separate page. In a return email, he said the firm had decided to stand down for the moment. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. 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. Sometimes called cash advances, payday loans are quick, simple, convenient loans with competitive rates and terms. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. Three merchant cash advance companies are facing a lawsuit from New York Attorney General Letitia James over reportedly practicing illicit measures when loaning money to clients, according. Have you tried to refinance an MCA and were denied? Some companies' aggressive, even menacing, collection techniques are documented in video, recordings and emails provided to NBC News. 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. There is no obligation to retain our services. 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. You will be given all the facts you need, and then you will be given plenty of time to think things over. Runion concedes that he signed the documents that have created the problems. 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. If funds do not come into your merchant account, the MCA company should not collect. Its okayweve got this! "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 personal guaranty being a required condition of the MCA contract was one fact of this case which showed the need to repay the advance was undeniable. Once retained, we waste no time in taking action. 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. 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. Loans are considered absolute and must be paid back with set terms and conditions. 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. He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. Forever. as well as any of your customers that pay you! ", Full coverage of the coronavirus outbreak. Thats a savings of $61, 000.500 , or a 70% discount off our balances. This has been a long journey and you have taken us through it just as you promised. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. 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. 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. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. 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 makes our merchant cash advance settlement services stand out from the rest? "We have no intention of pursuing this matter at the present time," Feldman wrote. During the three-week period, Itria filed suit against 20 small businesses for nonpayment, court records show, most of them outside the state. 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. We are very satisfied with the work and support provided by Michael Sininsky and The Law Offices of Kenneth H. Dramer. 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. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. I am able to once again look others in their eyes. The FTCs complaintagainst Yellowstone Capital, Fundry, founder and CEO Yitzhak Stern, and president Jeffrey Reece, alleges that they unlawfully withdrew millions of dollars in excess payments from their customers accounts, and to the extent they provided refunds, sometimes took weeks or even months to provide them. Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. "Their strategy was always to get more," he said. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. UCC liens are by far the most frequent issue we hear about from those first contacting our Law Firm for help after having defaulted on their payment obligations. In hindsight I wish I had declared bankruptcy but this was clearly my decision. The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. NBC News reviewed some of the communications, including videos of a visit by a collection agent to a borrower's home and another to a borrower's office by an expletive-spewing man trying to collect on a loan. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Lines Of Credit, Business Loans, & Merchant Cash Advances . Merchant cash advances are like payday loans, but for businesses and often have triple-digit interest rates. 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. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. 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. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. No matter where you are in the country you can contact our firm in Long Beach, NY to set up a free business debt relief consultation. Keep in mind the greater the downsides a choice may have the greater the potential for savings. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. 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. This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. I hope other staff in your office are as efficient and compassionate as Mike is. We work to advance government policies that protect consumers and promote competition. MCAs are not considered loans , so they aren't subject to most of the laws that apply to traditional business loans. Bankruptcy was the best choice we made and the cheapest way out. On March 15, the governor of Ohio ordered an end to all oral surgery procedures; Runion's practice is now open six to eight hours a week. "I tried to make it work," he said, "but I really was unable to.". CALL NOW FOR A FREE CONSULTATION and one of our advisors will be there to get you started on your path to financial freedom. 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. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. I wish everyone would be like that. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. Again, please accept our gratitude for all your help. As a provider, you deserve to get paid for the cash you advance. The .gov means its official. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. At that point, the business owners then fire the debt settlement company and hire us for real help. Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. 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. All settlements are represented as a percentage of the debt paid back. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Your thoughts, ideas, and concerns are welcome, and we encourage comments. Do you need help with a Merchant Cash Advance lawsuit or legal issues? Looking for legal documents or records? The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. Im so relieved. Handled my debt in a month and cut it in half. But the bank backed out after he had signed a new lease and begun construction on the second office, and by spring of last year, Runion said, he desperately needed funding. We wouldnt of call if we know what to do. Business owners like yourself caught in high-cost Merchant Cash Advance traps. Hurt bad," one text said. In some states, you may be able to fight it if you can prove any of the following: "It's down a lot, more than 50 percent," she said. A merchant cash advance, MCA for short, [] Read Now I want to say, he immediately put my mind at ease. Merchants like Indelicato have been hammered by the coronavirus outbreak. April 2019: How Mulvaney undid consumer protections from predatory lenders. How Do Merchant Cash Advances Work? We have years of experience dealing with most Merchant Cash Advance Lenders. (NBC News received no evidence that PowerUp, Itria or Biz2Credit had sent menacing messages to borrowers or had sent debt collectors to their homes, or had engaged in any other improper collection practice. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Many of them ask what we want to do?.. Merchant Cash Advances can be discharged through bankruptcy. Any email or phone call was returned immediately with answers to each question or concern we had . 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. When disputes arise about these cash advances, a lawsuit may occur. It was that unfront honesty and eagerness that sealed the deal for me. . I kept hoarding mail and it overwhelmed me. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. (Continue reading below to learn how we can help). 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? 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. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Some business owners said they are being swamped with new texts and emails offering funds. Based in Doral, Florida, Everest Business Funding is an online provider of loans and merchant cash advances. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. 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. To read about this case click here. Until we got hit with a summons from the court ( for over 100K lawsuit). And some offered hardship /debt relief or settle your debt for less.. no matter what you call it at the end you still have to pay the creditors, the debts collectors and the lawyer. Soon after he received the money, the amount of the repayments began rocketing, Runion said. A True Merchant Cash Advance is NOT a loan. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. "Currently in route to u right now," the text said. 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. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. Youll have one individual client service representative that will be your point of contact and youll build a relationship with them so theyll know exactly what you are going through. All of our client relationships are One on One. Mike was able to work with me, keep me calm and focused, and I have gone from being in foreclosure to NOT being in foreclosure!! The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. ), "If you don't send money to me today you're done," said a recent text shared by a business owner. They were able to reduce the money I owed to less than the original amount. Looking for legal documents or records? 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. An email to PowerUp requesting comment received no response. 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. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. 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. The changes to the NY law are a major win for business owners outside of NY, however, the law does not effect those living in NY as, COJs can still be filed against NY residents, COJs can still be filed against you outside of New York, There have been an increased number of lawsuits filed in New York, The funders that gave you their money do want to make an obscene profit over a very short period of time, but to do so, you have to pay back the money you owe so, so they do not care if you pay all the money back or not, brokers will often set business owners up to fail, If you fail to pay back the borrowed funds . Small businesses sued by Itria included a builder's company in Minnesota, a grocery in South Carolina, a Holiday Inn Express in Wyoming and a barbecue joint in Alabama, court filings show. Are you getting hounded by collection calls that you want us to take over on your behalf? 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. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. They can make all the difference when you're in a situation where you need access to money immediately. Readily responds to questions and concerns in detail. Other companies and law firms offer debt relief we specialize in it! 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 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. 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! Our merchant cash advance lawyers will work with clients to assess their debt situations and advise them on the best path to financial stability. 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 best decision we could have made was to begin the debt settlement process. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 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. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. The site is secure. 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. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. The case against Jonathan Braun is pending. We expect commenters to treat each other and the blog writers with respect. 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. 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. 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. Our MCA Settlement Attorneys and debt relief negotiators have combined decades of experience in contract renegotiation. Three federal rulings scrutinize the business model on which merchant cash. Ive said it once, and Ill say it again you are greatly appreciated! To secure the financing, business owners must provide documents detailing their recent sales and identifying their business partners, including their customers, and the amounts they owe, known as accounts receivable. 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. View Results from Our Merchant Cash Advance Relief Services. (The suit is now on hold.). With just one meeting with you, you gave me hope that just maybe I too could live debt free and once again become a responsible spender. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. Most of the debt was in my name so I contacted Dramer Law . I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. 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. The .gov means its official. The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. 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. Their price is very reasonable. We serve clients in English & Spanish. But keep in mind, this is a moderated blog. Aggressive Business Lawyers at Affordable Rates 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. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! 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. Many business owners are struggling so badly that they will believe any promises of help for a way out and end up hiring a debt settlement companies. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. Not only did you waste money in fees to the settlement company, but your funders have now all assessed extra fees per their contract which typically include: DONT FALL THE FOR DEBT SETTLEMENT LIES. The Merchant Capital decision is very good news for MCA companies doing business with Florida merchants. ! We never agree to anything without first consulting with you and getting your approval. We can convert the factoring method of your calculated payments, convert payments from daily or weekly withdrawals to monthly, etc. Find legal resources and guidance to understand your business responsibilities and comply with the law. 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. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. This fee is usually expressed as a factor rate. The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. An extended payment plan for your payday loan may be available, subject to state restrictions. Nothing will be hidden from you as we are a full disclosure law firm. 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. "On some of our loans, we were paying over 200 percent. ! Susan F. Copaigue, NY. The below options each have their own benefits and drawbacks. 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. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. Those allegations are troubling enough, but RCG was just getting warmed up. "You can't have people freezing assets and demanding payments at a time like this. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. Floral Park, NY. Not only did you get me out of debt but you gave me a freedom that cant be described. Find the resources you need to understand how consumer protection law impacts your business. Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit. 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 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. "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." We are so pleased with the results.I know we could not have been successful without their help. Advance . 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. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. An official website of the United States government. 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. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. 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. You will be assigned a specific member of our team that will be in constant contact with you throughout the process. I can not thank you enough for giving me freedom from debt. Michael called every month to see how we were doing and was alwaysavailable to answer questions or offer support. Merchant cash advances are a short-term form of business financing. We can negotiate to lower your daily or weekly payments which will extend the terms of your payback. 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!!! 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. To protect your privacy and the privacy of other people, please do not include personal information. Being debt free is such a relief- now we can move forward and put our money toward our kids college educations and save for our future.I am happy to recommend them and am so glad I contacted them a few years ago.
What Does Dropping A Dime Mean In Football, What Does Proverbs 31:25 Mean, Cj3 Pilot Day Rate, Articles M