Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. Other companies and law firms offer debt relief we specialize in it! I/we started out with $87,555.84 total debt and ended up paying back $26,020.71. Need an experienced Merchant Cash Advance attorney? 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. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. 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. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts. 7 Ways to Get Out of a Merchant Cash Advance - Hasanov Capital A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. Business owners like yourself caught in high-cost Merchant Cash Advance traps. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. Did you Personally Guarantee your advance or sign a Confession of Judgment? Report it to the FTC. We are very satisfied with the work and support provided by Michael Sininsky and The Law Offices of Kenneth H. Dramer. 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. The case is further summarized here. Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. All this just to get you to sign on the dotted line. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. A merchant cash advance is a type of financing that allows small business owners to access funds quickly. A Merchant Cash Advance is not a set term as the purchaser is paid back as funds come into your merchant account. 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. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. Thank you from the bottom of our hearts for all of your efforts in getting us through this! An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. In fact, MCAs are largely unregulated. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. Im so relieved. We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). Loans are considered absolute and must be paid back with set terms and conditions. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. Based on your current income and your financial hardship, we will determine which course of action will work best for you. I hope other staff in your office are as efficient and compassionate as Mike is. This COJ caused further recourse and hence, was deemed to be a loan rather than an actual advance, thus voiding the contract. Mike spent time communicating with me either by e-mail or phone. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. Mike Thank you so much for your help. "He more or less presented me the net cash I would receive and the payments. IE 11 is not supported. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. 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. I literally was paralyzed by fear and could not even face the mail. Are your accounts frozen or have liens been placed on your assets? ), "If you don't send money to me today you're done," said a recent text shared by a business owner. I would highly recommend this firm to anyone going through financial difficulty and need good advise. . 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. 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. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! 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. We research all over the internet and called many law firms and layers. Of course I want to thank you further than what I wrote. Failure to do so is a violation of the FDCPA, and we will sue them for you. Merchant Cash Advance Lawsuits - Global Legal Law Firm In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. Many companies do nothing for the high fees they charge. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street. Merchant cash advances have grown in popularity in recent years, particularly for businesses that cannot get small-business loans from traditional banks. Many times, when we successfully get our clients out of debt, they still need assistance with other areas of their financial life. 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. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. At that point, the business owners then fire the debt settlement company and hire us for real help. We work to advance government policies that protect consumers and promote competition. 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. I kept hoarding mail and it overwhelmed me. The site is secure. "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. What Happens if I Default on a Merchant Cash Advance? 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. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. "We're already seeing a decadelong decline in small businesses. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. 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. 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. 6-13-16, I think you and the company basically do a good job and I appreciate it. Like most people bankruptcy never crossed our mind. Some business owners said they are being swamped with new texts and emails offering funds. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Find the resources you need to understand how consumer protection law impacts your business. Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. 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. 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. A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Any questions I had were addressed rapidly and any messages I left were returned promptly. The complaint alleges that these practices violated the FTC Act. 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. Keep in mind the greater the downsides a choice may have the greater the potential for savings. All settlements are represented as a percentage of the debt paid back. 1-21-16. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Readily responds to questions and concerns in detail. Federal government websites often end in .gov or .mil. MERCHANT CASH ADVANCE LAWSUITS and JUDGMENTS - Lebedin Kofman LLP Looking for legal documents or records? Not only did you get me out of debt but you gave me a freedom that cant be described. Its basically free money! 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. Bob & I wish you a Happy, Healthy Holiday Season. 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 can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. However, they often come with high fees and confusing terms. 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. Bankruptcy was the best choice we made and the cheapest way out. By Michael R. Guerrero & John Sadler on January 13, 2023. The key to understanding how to litigate these cases is knowing where an MCA differs from traditional loans and credit lines, defined by the risk involved by the purchasing company. 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. Hes truly an asset to your business. Have you tried to refinance an MCA and were denied? 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. Beat Everest Business Funding in Court | SoloSuit Blog Your promptness, efficiency, and trustworthiness have always been beyond my imagination. In addition to the initial advance, the MCA provider will also charge a fee for the transaction. sincerely Mr & Mrs. Vogel, NY 12-15-14. FTC takes action against merchant cash advance providers The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. What Happens with a Merchant Cash Advance Breach of Contract Lawsuit Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. Global Legal Law Firmrepresents companies in merchant cash advance lawsuits to collect on underperforming or unpaid debts. In our case there is no way we canpayoff everything. We have years of experience dealing with most Merchant Cash Advance Lenders. Michael explained the process in detail and even though I was quite hesitate I feel this was the best option for me. Michael, my principal liaison from day one has been very professional, available, applied, assiduous, and reassuring throughout this relationship; it is hard not to state it in such glowing, when it is what it is. 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. All of our client relationships are One on One. That must change, Chopra said. 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. Sued for a Business Loan or Merchant Cash Advance? The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. The site is secure. They were so helpful at a very difficult financial time in my life. 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. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. 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. 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. Advance . Runion concedes that he signed the documents that have created the problems. New York Merchant Cash Advance Attorney | Jacovetti Law, P.C. 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. 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. When the business owners call to find out what is going on, they quickly find out that no progress has been made! Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. Its an alternative form of financing unfamiliar to many small business owners. 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? In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. 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. The best decision we could have made was to begin the debt settlement process. ! Susan F. Copaigue, NY. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. 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. It is true that a judgment (whether entered by COJ, default, or awarded) can also be used to freeze your incoming receivables, however, most funders do not use judgments to freeze receivables (especially now that COJs in NY are banned against out of state business owners) so filing a UCC lien is a much quicker tool! Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. Since our clients dont have tons of money to spare like attorneys that practice in other areas of law, we charge low fees making our services affordable for anyone that needs help. 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. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. The court proceedings were annulled, and agreeable working terms were consolidated with my creditors. 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. It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. Search the Legal Library instead. You will be assigned a specific member of our team that will be in constant contact with you throughout the process. MCAs are not considered loans , so they aren't subject to most of the laws that apply to traditional business loans. 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. He is very professional and extremely helpful.
St Anne's Hill, Chertsey Haunted, Why Is My Eucalyptus Plant Leaves Turning Brown, How Long Did Slavery Last In The United States, Bill Hutchinson The Lottery, Articles M