merchant cash advance lawsuit

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. Aggressive Business Lawyers at Affordable Rates 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. 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. We do not want you to be harassed well take over the calls for you. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back. Find legal resources and guidance to understand your business responsibilities and comply with the law. Mike was able to work with me, keep me calm and focused, and I have gone from being in foreclosure to NOT being in foreclosure!! Opinions in comments that appear in this blog belong to the individuals who expressed them. 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! If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. 1-21-16. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. 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. What a wonderful feeling to be out of debt at last! For instance, the filings can be entered without a hearing or review by a judge. If you are a business owner and want to file for personal bankruptcy, your obligation to pay back the advance will be discharged; however, the liability for the business remains. 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. "Their strategy was always to get more," he said. View Results from Our Merchant Cash Advance Relief Services. 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. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. 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. Merchant cash advance companies provide funds to businesses in exchange for a percentage of their revenues, often in the form of daily withdrawals from the businesss bank account until the obligation has been met. The problem is, you will NOT receive a refund of any fees paid to the debt settlement company and your business is now far worse off than it was! Merchant Cash Advance companies are aggressive and do not wait to take action when a business defaults on their product. ! Susan F. Copaigue, NY. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced orderputs them on the Banned Wagon, prohibiting them from engaging in small business financing and debt collection. In addition to potentially saving you money, retaining Dramer Law will save you time as we, Our Lawyers Can Help Whether or Not You Signed a Confession of Judgment. 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. Most Sincerely, Ken and Nicki K Highland, NY. In addition to the initial advance, the MCA provider will also charge a fee for the transaction. It is your choice whether to submit a comment. I want to say, he immediately put my mind at ease. He didn't talk too much about how it was secured or the workings of it.". If you do, you must create a user name, or we will not post your comment. 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. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. (Continue reading below to learn how we can help). Our managing the collection efforts on your behalf helps to ensure the finances of your business stay private, away from the ears of your employees who typically will worry about their job security and may start to search for different employment if they believe you are struggling. Many of them ask what we want to do?.. Learn more about your rights as a consumer and how to spot and avoid scams. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. 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. Do you want to reduce your payments with our cash advance repayment options? If they do provide legal advice, they are doing so illegally, and it may not be accurate! They can make all the difference when you're in a situation where you need access to money immediately. Each option will have its own savings potential. 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. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Merchant cash advances have grown in popularity in recent years, particularly for businesses that cannot get small-business loans from traditional banks. In addition to potentially saving you money, retaining Dramer Law will save you time as we relieve you of the harassing and embarrassing collection calls you and your employees may get barraged with on a daily basis. Its basically free money! The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. Most of the debt was in my name so I contacted Dramer Law . 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! Do you want to reduce the amount of the principal balance that you owe with our merchant cash advance settlement negotiations? I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) 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. 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? 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. It's an alternative form of financing unfamiliar to many small business owners. When disputes arise about these cash advances, a lawsuit may occur. The merchant cash advance companies often demand that borrowers also pay attorneys' fees, which can be 25 percent to 33 percent of the balance due under a borrower's agreement, documents show. "You can't have people freezing assets and demanding payments at a time like this. A merchant cash advance is just one way to secure financing for your business. The comments posted on this blog become part of the public domain. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. 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. An extended payment plan for your payday loan may be available, subject to state restrictions. They do not belong to or represent views of the Federal Trade Commission. ", Full coverage of the coronavirus outbreak. They were so helpful at a very difficult financial time in my life. 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. Looking for legal documents or records? Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. 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. Give Mike a call and a chance, his very sharp and on the point. Our lawyers and certified debt arbitrators will discuss the Pros AND Cons of each different option, as debt settlement isnt the only option out there to choose from. We would like to say Michael Sininsky is an asset to your company . A just-announced settlement will return more than $2.7 million to consumers and includes a key provision to protect small businesses in the future. I can not thank you enough for giving me freedom from debt. 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. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. There is no obligation to enroll, so dont delay. 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. Dial 516-670-5165 right away. 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. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Like most people bankruptcy never crossed our mind. We have heard many horror stories. 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. Thats the gist of the agencys 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. Report it to the FTC. 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. 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. 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. In addition, the complaint alleges that for years Yellowstone deceived potential customers about the amount of money they would receive, with the amount shown on the contract not reflecting additional fees that would be deducted. This can be said for ANY service we offer from negotiations to litigation to bankruptcy. 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. Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. An official website of the United States government. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. ", When merchants fall behind on their payments, some direct lenders send threatening emails and texts, owners and their lawyers say. Runion concedes that he signed the documents that have created the problems. Their price is very reasonable. 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. This fee is usually expressed as a factor rate. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. We will take our time with you and help evaluate what your best course of action should be. 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. Advance . Although I wish I had never put myself into the position to need this companies services, Mr. Sininsky was very extremely effective in working with me to reduce my consumer debt. The case against Jonathan Braun is pending. Is a Merchant Cash Advance (MCA) ruining your business cash flow? Let's break down what this MCA looks like if the provider deducted 10% of your monthly credit card sales until you repaid the full $70,000 based on different revenue amounts: MCA details. Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. Failure to do so is a violation of the FDCPA, and we will sue them for you. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. For more information on how the FTC handles information that we collect, please read our privacy policy. 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. 12-14-17, They were very helpful. Runion said the companies that advanced him cash have persuaded an insurer holding $40,000 in reimbursements for procedures he had already completed to send the money to the advance company, not to Runion. 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. All settlements are represented as a percentage of the debt paid back. Get to keep our house and car, even our credit score went up. CALL TODAY for your FREE CONSULTATION and let us help you save your business today! Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. We will send notification of power of attorney to your actual MCA Purchaser, their collectors, their attorneys, and even the Marshall or Sheriff if they are now involved. Freeze your business's bank accounts. Most MCAs have turned to other states like Pennsylvania, Illinois, & Utah to file their COJs, and these states have seen an increase in COJ filings ever since the NY laws have changed. trade references (of which some are your customers); bank statements (they will looks through your statements to see who pays you); or. I was beside myself when I spend a hit letter from an attorney who.informed me that I was in debt for a very large amount of money that was owed 15 years ago I thought the matter had been resolved through my divorce, but to.my dismay it wasnt and had accrued an astronomical amount of late payments and finance charges, they froze our bank accounts , but through the expertise of Mr.Sininsky he resolved a 15 year matter in 2 weeks unfroze our accounts and saved us more than we could of imagined I recommend the Dramer Law firm highly and lifted a great deal of stress for us. Prev Post We serve clients in English & Spanish. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street. Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. In 2019, it provided an estimated $19 billion in funding. The FTC alleged that RCG, Giardina, and others stitched together a blanket of misrepresentations that cloaked the true nature of the transaction. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Again, please accept our gratitude for all your help. 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. The complaint was filed in the U.S. District Court for the Southern District of New York. Soon after he received the money, the amount of the repayments began rocketing, Runion said. 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. 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)! A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". The MCA companies will almost always move to sue the business immediately. The .gov means its official. 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. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! The .gov means its official. Merchant cash advance companies provide funds to businesses in exchange for a percentage of their revenues, often in the form of daily withdrawals from the business's bank account until the obligation has been met. Do you need help with a Merchant Cash Advance lawsuit or legal issues? 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. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. All settlements are represented as a percentage of the debt paid back. A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. We never agree to anything without first consulting with you and getting your approval. What makes our merchant cash advance settlement services stand out from the rest? He explained your retainer fee; that costs for filing papers; phone calls, and other incidentals, would be deducted from that fee and, if any fees were due at the end of the process, I would be liable for those additional fees. Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. He is very professional and extremely helpful. 7-7-2017, The Law Offices of Kenneth H. Dramer P.C Attorneys at Law were efficient in handling by bankruptcy case. 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 . This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. . An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! 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. Bronx, NY 11-24-15 review posted on Yelp. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. These actions cause collectors to seek other measures to collect, often meaning lawsuits. He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. Before sharing sensitive information, make sure youre on a federal government site. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. It is our goal to help you find the right funding solution for your unique needs and situation. Mike Thank you so much for your help. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. 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. No matter where you are in the country you can contact our firm in Long Beach, NY to set up a free business debt relief consultation. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. I wish everyone would be like that. 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 will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. And for . Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Its okayweve got this! 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. They were able to reduce the money I owed to less than the original amount. 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. 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 I had any questions or concerns they would answer any questions very quickly and patiently. You can further research this case here. They advertised no upfront fees and then pocketed a hefty chunk of cash off the top, leaving businesses with substantially less funding than they had been promised. He kept me up-to-date about the process of this whole mess I got myself into and he was truly a comfort to me these past few months. Find legal resources and guidance to understand your business responsibilities and comply with the law. Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show.

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