We wouldnt of call if we know what to do. 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. 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. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. The companies generally provide a predetermined amount of money to a business in exchange for future receipts. Thank you from the bottom of our hearts for all of your efforts in getting us through this! 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. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. Very pleased with the results. S.P. An extended payment plan for your payday loan may be available, subject to state restrictions. 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. Handled my debt in a month and cut it in half. 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. 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. "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. Put our experiencedMerchant Cash Advance Settlement Attorneysto work for you. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. 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. In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. 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. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. "We're already seeing a decadelong decline in small businesses. There is no obligation to enroll, so dont delay. We are so pleased with the results.I know we could not have been successful without their help. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! 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. as well as any of your customers that pay you! 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. We have heard many horror stories. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. 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. 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. When Debt is the Problem We Have the Answers! I literally was paralyzed by fear and could not even face the mail. 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 company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. IE 11 is not supported. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Many MCAs have personal guarantees which lead many business owners with little personal assets to file for personal 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. 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. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. Learn more about your rights as a consumer and how to spot and avoid scams. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. Have you spotted questionable financing offers that target small businesses? 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 work to advance government policies that protect consumers and promote competition. It became a cycle of death. 1-21-16. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. Another small business borrower who's been through the wringer with merchant cash advance companies is Jon Runion of Runion Dental Group in Columbus, Ohio. 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. Do you need help with a Merchant Cash Advance lawsuit or legal issues? Its basically free money! 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? Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. Readily responds to questions and concerns in detail. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. Hes truly an asset to your business. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance exceeded 1,900%. 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. In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. Loans are considered absolute and must be paid back with set terms and conditions. He is very professional and extremely helpful. Other companies and law firms offer debt relief we specialize in it! "I don't see how companies that are collecting future receipts can be litigating against companies that don't have any receipts," Indelicato said. access to your bank account (they will looks through your account to see who pays you), insufficient fund fees (typically $35 per occurrence), stop payment fees (typically $500 $5,000), fees for changing bank & merchant accounts (typically $100 $2,500), 3rd party interference fees (typically $2,500 $5,000). I never felt at anytime like I was getting less than 110% from them. And for . We research all over the internet and called many law firms and layers. Based on your current income and your financial hardship, we will determine which course of action will work best for you. Find the resources you need to understand how consumer protection law impacts your business. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. During the three-week period, Itria filed suit against 20 small businesses for nonpayment, court records show, most of them outside the state. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Floral Park, NY. 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. If I had any questions or concerns they would answer any questions very quickly and patiently. "The FTC has to seriously look at rules that ban some of the most extortionate clauses in these loan contracts," he said, adding that the FTC is prepared to "go after some of the loan sharks and their lawyers who run lawsuit mills that are filing some of these sham collection actions.". The case against Jonathan Braun is pending. "He more or less presented me the net cash I would receive and the payments. We offer many different services for those struggling with debts including Business Debt Relief, Mortgage Relief, Tax Relief, & Student Loan Relief. I wish everyone would be like that. The complaint was filed in the U.S. District Court for the Southern District of New York. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. Most of the debt was in my name so I contacted Dramer Law . To protect your privacy and the privacy of other people, please do not include personal information. (The suit is now on hold.). Our MCA Settlement Attorneys and debt relief negotiators have combined decades of experience in contract renegotiation. Advance . Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. 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. When they reached $70,000 a month, he had trouble paying his vendors. As in any industry, some of the companies' practices are more problematic than others. Merchant Cash Advance companies are aggressive and do not wait to take action when a business defaults on their product. We'll get back to you within 5 . He said the actions were dropped because they worked out payment plans. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. ", Full coverage of the coronavirus outbreak. Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. 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 first missed payment invokes the lender's right to pursue you and your business. An official website of the United States government. Runion concedes that he signed the documents that have created the problems. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. 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. 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. (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. 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. Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. 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. In fact, MCAs are largely unregulated. Many companies do nothing for the high fees they charge. 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)! However, they often come with high fees and confusing terms. 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. They were able to reduce the money I owed to less than the original amount. Search the Legal Library instead. 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. Before sharing sensitive information, make sure youre on a federal government site. Most banks offer more conventional small business loans with favorable terms, but longer turnaround times. 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. 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. These actions cause collectors to seek other measures to collect, often meaning lawsuits. 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. 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. 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. It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. 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. 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. Thank you again for all your help Greg T. Long Island, NY. Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. Find legal resources and guidance to understand your business responsibilities and comply with the law. 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. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. We offer all debt relief options and we service our clients like family. Now half year later we are debt free, no need to worry from phone calls from debts collectors. Ive said it once, and Ill say it again you are greatly appreciated! 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. Most of the merchant cash advance lawsuits occur in New York even though businesses across the United States obtained funding from these companies. A few years ago I could not imagine a way out of this hole that I dug myself. 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. 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 can convert the factoring method of your calculated payments, convert payments from daily or weekly withdrawals to monthly, etc. 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. 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. 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. Report it to the FTC. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. To file a detailed report about a scam, go to. What makes our merchant cash advance settlement services stand out from the rest? He didn't talk too much about how it was secured or the workings of it.". Freeze your business's bank accounts. Looking for legal documents or records? 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. By Michael R. Guerrero & John Sadler on January 13, 2023. 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. For example, a 40% settlement means that 40% of the debt is paid back and 60% is forgiven. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. 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. Like most people bankruptcy never crossed our mind. "I tried to make it work," he said, "but I really was unable to.". 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. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. Another person was told if he didnt pony up, they would falsely accuse him of being a child molester. 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..
