Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. I am able to once again look others in their eyes. Please call for your free consultation to speak to one of our trained professionals. 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. We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. And for . 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. 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. The companies generally provide a predetermined amount of money to a business in exchange for future receipts. We expect commenters to treat each other and the blog writers with respect. Did you Personally Guarantee your advance or sign a Confession of Judgment? A screenshot of a text sent to a small business owner. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. Now half year later we are debt free, no need to worry from phone calls from debts collectors. "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. 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. Michael explained the process in detail and even though I was quite hesitate I feel this was the best option for me. 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. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. Like most people bankruptcy never crossed our mind. Find legal resources and guidance to understand your business responsibilities and comply with the law. A lender is. Based in Doral, Florida, Everest Business Funding is an online provider of loans and merchant cash advances. A merchant cash advance is a type of financing that allows small business owners to access funds quickly. If I had any questions or concerns they would answer any questions very quickly and patiently. According to the FTCs complaint, Yellowstone has regularly withdrawn hundreds or thousands of dollars from businesses accounts for days after customers had repaid the full amounts owed in their contracts. Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. Are you getting hounded by collection calls that you want us to take over on your behalf? This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! Most of the debt was in my name so I contacted Dramer Law . We will be in touch with you throughout the process to keep you informed and are available when you need us. We are so pleased with the results.I know we could not have been successful without their help. 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. 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. A small-fleet owner received this text from a merchant cash advance provider. They completely turned around a very trying situation for me. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. Thank you from the bottom of our hearts for all of your efforts in getting us through this! The success fee helps ensure we are incentivized, so youll know we have your best interests in mind. ", Full coverage of the coronavirus outbreak. The site is secure. As a provider, you deserve to get paid for the cash you advance. 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. 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. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. Prev Post We'll get back to you within 5 . Freeze your business's bank accounts. Floral Park, NY. I never felt at anytime like I was getting less than 110% from them. 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. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". Merchant cash advances are like payday loans, but for businesses and often have triple-digit interest rates. 4-6-15, Recently we finished the debt relief program through Dramer Law. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. It was that unfront honesty and eagerness that sealed the deal for me. Through negotiations, we can restructure your advance to make it more affordable or can offer a reduction of the principal balance owed through settlement negotiations and Merchant Cash Advance Debt Relief. 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. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. Business owners like yourself caught in high-cost Merchant Cash Advance traps. 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. For example, a 40% settlement means that 40% of the debt is paid back and 60% is forgiven. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). What a wonderful feeling to be out of debt at last! Failure to do so is a violation of the FDCPA, and we will sue them for you. 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. ", When merchants fall behind on their payments, some direct lenders send threatening emails and texts, owners and their lawyers say. 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. New Jersey Attorney General settles lawsuit against merchant cash advance providers. All this just to get you to sign on the dotted line. It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. Rather than infuse the business with necessary funds, the MCA eats away at the businesses revenues and cash, until the ACH repayments (daily or weekly) become cost prohibitive and inevitably impossible to repay. Let our Merchant Cash Advance Debt Relief Attorneys to defend you or for our Certified Debt Arbitrators to negotiate on your behalf to save you as much time and money as possible the right way! 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 . According to the FTC, when small business owners sought capital, RCG formerly known as Richmond Capital Group lured them in with fast talk and supposedly sweet terms for what are called merchant cash advances. We offer all debt relief options and we service our clients like family. 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. They will tell you that you only have to make one payment into an escrow account and theyll settle your balances for less making MCA debt settlement seem like a walk in the park. A COJ will allow your funder to freeze your bank accounts whereas a UCC lien will allow your funder to freeze your receivables BEFORE THE FUNDS EVER MAKE IT INTO YOUR BANK ACCOUNT! We will take our time with you and help evaluate what your best course of action should be. I can not thank you enough for giving me freedom from debt. Find the resources you need to understand how consumer protection law impacts your business. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. Franchisee Conversations with Chair Khan, A just-announced settlement will return more than $2.7 million to consumers, previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich, Franchises, Business Opportunities, and Investments, The Luring Test: AI and the engineering of consumer trust, Franchise Fundamentals: Debunking five myths about buying a franchise, A required action after refraction: FTC staff sends cease and desist letters about Eyeglass Rule compliance, The 411 about FTC-Florida AG action against Chargebacks911. The only source of capital he could find was from merchant cash advance companies. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. Mike spent time communicating with me either by e-mail or phone. We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. In hindsight I wish I had declared bankruptcy but this was clearly my decision. We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. But aggressive lenders are still trying to extract money from their empty coffers. Not only did you get me out of debt but you gave me a freedom that cant be described. Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit. Loans are considered absolute and must be paid back with set terms and conditions. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. We were thankful that he had our account . Thank you again for all your help Greg T. Long Island, NY. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. 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? WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! Search the Legal Library instead. 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. 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. 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. In some states, you may be able to fight it if you can prove any of the following: We will work quickly and efficiently to bring a successful resolution to your situation. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street. An official website of the United States government. Learn more about your rights as a consumer and how to spot and avoid scams. "On some of our loans, we were paying over 200 percent. 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! Yellowstone Capital misled potential customers and withdrew additional payments customers did not owe, Competition and Consumer Protection Guidance Documents, or report fraud, scams, and bad business practices at, sign up to get the latest FTC news and alerts, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments, FTC Lawsuit Leads to Permanent Ban from Debt Relief, Telemarketing for Operators of Debt Relief Scam, Is Franchising Fair? Soon after he received the money, the amount of the repayments began rocketing, Runion said. They were so helpful at a very difficult financial time in my life. Ive said it once, and Ill say it again you are greatly appreciated! 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. At that point, the business owners then fire the debt settlement company and hire us for real help. Download the NBC News app for full coverage and alerts about the coronavirus outbreak. 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. 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 have been an increased number of lawsuits filed in New York since the COJ ban has gone into place which is a great thing, as lawsuits can be defended, and doing so will buy you much needed time to either work out a payment arrangement or a discounted settlement payoff. Depend on fast response times. 1-21-16. 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. The complaint alleges that these practices violated the FTC Act. SoloSuit can help you take a stand and win in court. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. If you do, you must create a user name, or we will not post your comment. A Merchant Cash Advance is not a set term as the purchaser is paid back as funds come into your merchant account. Sometimes called cash advances, payday loans are quick, simple, convenient loans with competitive rates and terms. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. Other companies and law firms offer debt relief we specialize in it! 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. 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)! 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. 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. Its basically free money! As in any industry, some of the companies' practices are more problematic than others. 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. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. "Their strategy was always to get more," he said. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. We work to advance government policies that protect consumers and promote competition. Opinions in comments that appear in this blog belong to the individuals who expressed them. 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. We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. 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. Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. An extended payment plan for your payday loan may be available, subject to state restrictions. Find the resources you need to understand how consumer protection law impacts your business. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. The best decision we could have made was to begin the debt settlement process. The case will be decided by the court. Getting out of that debt was like taking a huge weight off my shoulders. Cory K. 4-20-15, Nicki and I are ecstatic, she is so happy she is in tears! 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 . We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. "You will end up hurt. Need an experienced Merchant Cash Advance attorney? sincerely Mr & Mrs. Vogel, NY 12-15-14. I wish everyone would be like that. We may routinely use these records as described in the FTCsPrivacy Act system notices. IE 11 is not supported. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. The merchant cash advance agreements typically allow for these remedies. I hope other staff in your office are as efficient and compassionate as Mike is. A few years ago I could not imagine a way out of this hole that I dug myself. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. Im so relieved. Federal government websites often end in .gov or .mil. Very pleased with the results. S.P. Forever. Get to keep our house and car, even our credit score went up. They were able to reduce the money I owed to less than the original amount. I/we started out with $87,555.84 total debt and ended up paying back $26,020.71. In 2019, it provided an estimated $19 billion in funding. I literally was paralyzed by fear and could not even face the mail. He was kind, calming and very thorough. Do you need help with a Merchant Cash Advance lawsuit or legal issues? As you know being in debt that you cant see your way out of causes so many restless nights and a lot of stress and anxiety. I wasnt even their client at this point and they were already going above and beyond. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. 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. A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. 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. When disputes arise about these cash advances, a lawsuit may occur. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. Merchant Cash Advances can be discharged through bankruptcy. The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. April 2019: How Mulvaney undid consumer protections from predatory lenders. Our merchant cash advance lawyers will work with clients to assess their debt situations and advise them on the best path to financial stability. Debt relief is an important decision, and we wont rush you! Michael called every month to see how we were doing and was alwaysavailable to answer questions or offer support. Are your accounts frozen or have liens been placed on your assets? Give Mike a call and a chance, his very sharp and on the point. That must change, Chopra said. 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. Merchant Cash Advance companies are aggressive and do not wait to take action when a business defaults on their product. Federal government websites often end in .gov or .mil. Search the Legal Library instead. Commissioner Rohit Chopra issued a statement. The repayment was not contingent upon funds coming into the merchant account, causing it to be a loan and therefore the rate charged, which was calculated to be roughly 180%, was in fact deemed usurious and thus the contract was voided. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. We offer many different services for those struggling with debts including Business Debt Relief, Mortgage Relief, Tax Relief, & Student Loan Relief. Well send out a limited power of attorney notice to anyone trying to collect money from you to make sure that they contact our Law Firm instead of contacting your company. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. Bronx, NY 11-24-15 review posted on Yelp. Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. It is at this time they will realize the debt settlement company is not looking out for your best interest, but instead, their own best interest which is to collect their absorbent fees. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. The site is secure. you have signed away UCC Lien rights to your funder, a UCC lien will allow your funder to freeze your receivables , BEFORE THE FUNDS EVER MAKE IT INTO YOUR BANK ACCOUNT. Michael was always professional and courteous as well as efficient . Thats a savings of $61, 000.500 , or a 70% discount off our balances. 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. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. 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. 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. 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. The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. There is no obligation to enroll, so dont delay. Hes truly an asset to your business. Thanks! JC, Queens, NY.
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