Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. I/we started out with $87,555.84 total debt and ended up paying back $26,020.71. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. 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 site is secure. 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. Attorney General James Sues Predatory Lender That Threatened Violence North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. 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. A proposed class action lawsuit has been filed against Penn Capital Funding, MapCap Funding and those who run the merchant cash advance (MCA) companies over their alleged use of an apparent loophole in Connecticut law to collect upon unlawful debts and otherwise fraudulently obtain money. He said the actions were dropped because they worked out payment plans. Hire A Real Law Firm instead of a Debt Relief Company, Merchant Cash Advances and Filing Bankruptcy, The amount owed to MCA and other obligations, Past, Current, & Future Cash Flow of the business, chance, pretty much stressed out on my options, I stumbled on, but very satisfied with my collaboration with Dramer. For example, a 40% settlement means that 40% of the debt is paid back and 60% is forgiven. 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 underlying lawsuit involved several commonly litigated issues in the MCA space, and the court unambiguously came down on the side of the MCA company. View Results from Our Merchant Cash Advance Relief Services. Do you want to reduce your payments with our cash advance repayment options? Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. 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. CALL NOW FOR A FREE CONSULTATION and one of our advisors will be there to get you started on your path to financial freedom. The complaint also cites examples of businesses being left with bank overdraft fees as a result of the unauthorized withdrawals. 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. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Click Here to be Directed to a separate page. All of our client relationships are One on One. We will be in touch with you throughout the process to keep you informed and are available when you need us. These actions cause collectors to seek other measures to collect, often meaning lawsuits. Find the resources you need to understand how consumer protection law impacts your business. There is no obligation to enroll, so dont delay. The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. Mike spent time communicating with me either by e-mail or phone. 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. "I tried to make it work," he said, "but I really was unable to.". However, they often come with high fees and confusing terms. Most Sincerely, Ken and Nicki K Highland, NY. We typically work repeatedly with the same companies and are known for resolving accounts so therefore have a great reputation with industry lenders and collectors. It is our goal to help you find the right funding solution for your unique needs and situation. Your thoughts, ideas, and concerns are welcome, and we encourage comments. The MCA companies will almost always move to sue the business immediately. What Happens if You Default on a Merchant Cash Advance? - Lane Law We can convert the factoring method of your calculated payments, convert payments from daily or weekly withdrawals to monthly, etc. Most of the merchant cash advance lawsuits occur in New York even though businesses across the United States obtained funding from these companies. Im so relieved. There are multiple options for each problem we encounter so based on your analysis; we will then tailor fit the best option to the individual needs of your budget. 4-6-15, Recently we finished the debt relief program through Dramer Law. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. But the 81-year-old lawyer says that's not how it worked when his solo practice accepted $55,000 from Scottsdale, Ariz.-based . He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. Commissioner Rohit Chopra issued a statement. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts. Failure to do so is a violation of the FDCPA, and we will sue them for you. We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). The Commission vote authorizing the staff to file the complaint was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating. If you do not have funds for either a payment plan or settlement, fighting the lawsuit will buy you time and can even prevent a judgment from being entered against you and your business altogether. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. The below options each have their own benefits and drawbacks. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. Prev Post Be well. Mary R. Bayshore, NY 4-30-2018, I would highly recommend Dramer Law for your debt settlement needs. Default judgments by MCA lenders and their law firms can be vacated giving leverage to small businesses to pursue resolution of the debt via litigation and or settlement. 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. I never felt at anytime like I was getting less than 110% from them. We'll get back to you within 5 . Looking for legal documents or records? Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. "I'll show you what type of loser you are you clown of a man.". Search the Legal Library instead. As couple we are able keep certain amount of assets. 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. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. "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. A screenshot of a text sent to a small business owner. Now half year later we are debt free, no need to worry from phone calls from debts collectors. It is your choice whether to submit a comment. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 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. 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. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Office of The Attorney General Like most people bankruptcy never crossed our mind. Its basically free money! Merchant Cash Advance Lawsuits - Global Legal Law Firm "Currently in route to u right now," the text said. 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? That must change, Chopra said. 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. ", Full coverage of the coronavirus outbreak. 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. We wont post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. We were thankful that he had our account . 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. All this just to get you to sign on the dotted line. "Normally we're usually really busy. 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. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. as well as any of your customers that pay you! As in any industry, some of the companies' practices are more problematic than others. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). They do not belong to or represent views of the Federal Trade Commission. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". 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. Merchant Cash Advances can be discharged through bankruptcy. MCAs are not considered loans , so they aren't subject to most of the laws that apply to traditional business loans. We work to advance government policies that protect consumers and promote competition. Global Legal Law Firmrepresents companies in merchant cash advance lawsuits to collect on underperforming or unpaid debts. We will take our time with you and help evaluate what your best course of action should be. The complaint was filed in the U.S. District Court for the Southern District of New York. Bob & I wish you a Happy, Healthy Holiday Season. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. We work to advance government policies that protect consumers and promote competition. As I mentioned before the only thing is Im interested to see when the payments Ive made start showing up on my credit report as its still very low. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. Bronx, NY 11-24-15 review posted on Yelp. We will work quickly and efficiently to bring a successful resolution to your situation. 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. Based on your current income and your financial hardship, we will determine which course of action will work best for you. The offers are alluring to owners who often operate on the edge and are strapped for cash. 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. Thank you again for all your help Greg T. Long Island, NY. Depend on fast response times. Merchant Cash Advance - Grant Phillips Law PLLC 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. 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. If you do, you must create a user name, or we will not post your comment. 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. 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. Have you tried to refinance an MCA and were denied? 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.

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