Hurt bad," one text said. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! Call the police I don't care.". Thank you again for all your help Greg T. Long Island, NY. A lender is. Sometimes called cash advances, payday loans are quick, simple, convenient loans with competitive rates and terms. 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. Is a Merchant Cash Advance (MCA) ruining your business cash flow? We will take our time with you and help evaluate what your best course of action should be. Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! 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. 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. We do not only offer one path, as no one process can solve everyones needs. Merchant cash advances are like payday loans, but for businesses and often have triple-digit interest rates. Im so relieved. He is very professional and extremely helpful. 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. Runion said he told the cash advance companies that he didn't have the money to pay them. Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. 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. I hope other staff in your office are as efficient and compassionate as Mike is. The .gov means its official. 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. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Need an experienced Merchant Cash Advance attorney? 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? 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. He was kind, calming and very thorough. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. 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. Commissioner Rohit Chopra issued a statement. If funds do not come into your merchant account, the MCA company should not collect. This can be said for ANY service we offer from negotiations to litigation to bankruptcy. The only source of capital he could find was from merchant cash advance companies. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) It became a cycle of death. They were so helpful at a very difficult financial time in my life. 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. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. The FTC had previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich. Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. 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. Do you want to reduce your payments with our cash advance repayment options? If you Merchant Cash Advance position is eating away at your business cash flow and revenues, don't hesitate to contact Texas Merchant Cash Advance Attorney Grant Phillips Law, PLLC - serving clients in Texas and . A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. 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. You pay for our performance and thats what we do we perform! Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. 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. From the initial consultation and throughout the entire process ,Michael patiently and fully explained everything. We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. Yellowstone Capital Refunds | Federal Trade Commission 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. FTC takes action against merchant cash advance providers Small businesses have borrowed billions from unregulated merchant cash advance companies. All settlements are represented as a percentage of the debt paid back. The Merchant Capital decision is very good news for MCA companies doing business with Florida merchants. Merchant cash advance operators settle FTC charges for bilking small It is your debt and your money, soyou have the final say in all of our negotiations. 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. (The suit is now on hold.). In addition to the initial advance, the MCA provider will also charge a fee for the transaction. 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. It is your choice whether to submit a comment. Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. At that point, the business owners then fire the debt settlement company and hire us for real help. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. sincerely Mr & Mrs. Vogel, NY 12-15-14. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! In hindsight I wish I had declared bankruptcy but this was clearly my decision. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. This has been a long journey and you have taken us through it just as you promised. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Three federal rulings scrutinize the business model on which merchant cash. They were able to reduce the money I owed to less than the original amount. New Jersey Attorney General settles lawsuit against merchant cash advance providers. Need an experienced Merchant Cash Advance attorney? Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. 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. Find legal resources and guidance to understand your business responsibilities and comply with the law. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. We serve clients in English & Spanish. Many times, when we successfully get our clients out of debt, they still need assistance with other areas of their financial life. The success fee helps ensure we are incentivized, so youll know we have your best interests in mind. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. What makes our merchant cash advance settlement services stand out from the rest? Lawsuits are especially great if you used a broker to obtain funding. Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. I didnt feel rushed or like I was being blown off. Its an alternative form of financing unfamiliar to many small business owners. To file a detailed report about a scam, go to. 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. 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. Merchant Cash Advance Defense: How to Protect Yourself From Lawsuits Other companies and law firms offer debt relief we specialize in it! If you do, you must create a user name, or we will not post your comment. Mike spent time communicating with me either by e-mail or phone. Give Mike a call and a chance, his very sharp and on the point. Its basically free money! In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. What a wonderful feeling to be out of debt at last! 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 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. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. Its okayweve got this! Nothing will be hidden from you as we are a full disclosure law firm. When the business owners call to find out what is going on, they quickly find out that no progress has been made! Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. The agreements are enforceable contracts the borrowers have agreed to, lawyers say, but some of the aggressive collection practices, such as visiting borrowers' homes, aren't legal, they contend. Cash Advance Firm to Pay $9.8M to Settle FTC Complaint It Overcharged 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 . Sued for a Business Loan or Merchant Cash Advance? Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 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. An extended payment plan for your payday loan may be available, subject to state restrictions. Merchant cash advances are a short-term form of business financing. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. trade references (of which some are your customers); bank statements (they will looks through your statements to see who pays you); or. It is our goal to help you find the right funding solution for your unique needs and situation. 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. An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. 'I'm Ruined': Litigation Trend Takes Aim at Merchant Cash Advance We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. 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. MCAs and Loans also differ in that loan payments need to be paid regardless of receivables coming into your account. Based on your current income and your financial hardship, we will determine which course of action will work best for you. Soon after he received the money, the amount of the repayments began rocketing, Runion said. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. MERCHANT CASH ADVANCE ATTORNEY-TEXAS - Grant Phillips Law PLLC 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. Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. 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. We think back at how hopeless we were feeling when we first contacted you and your firm, how reassuring it was to speak with you and how you empowered us to get this dark cloud behind us. Put our experiencedMerchant Cash Advance Settlement Attorneysto work for you. We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. We are so pleased with the results.I know we could not have been successful without their help. Runion concedes that he signed the documents that have created the problems. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. To protect your privacy and the privacy of other people, please do not include personal information. As in any industry, some of the companies' practices are more problematic than others. 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.