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. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. I/we started out with $87,555.84 total debt and ended up paying back $26,020.71. Its an alternative form of financing unfamiliar to many small business owners. Once retained, we waste no time in taking action. Prev Post A few years ago I could not imagine a way out of this hole that I dug myself. Worked with Michael who was so patient and was very understanding. "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." However, they often come with high fees and confusing terms. 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. Dont use trial and error trying to figure this out on your own with thousands of your dollars at stake when errors can be costly! Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Search the Legal Library instead. 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. 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. 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. How Do Merchant Cash Advances Work? 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. The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance exceeded 1,900%. We were thankful that he had our account . Thank you again for all your help Greg T. Long Island, NY. As couple we are able keep certain amount of assets. Have you tried to refinance an MCA and were denied? 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. They completely turned around a very trying situation for me. as well as any of your customers that pay you! We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. 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. 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. 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. 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. 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. Many times, when we successfully get our clients out of debt, they still need assistance with other areas of their financial life. I literally was paralyzed by fear and could not even face the mail. We would like to say Michael Sininsky is an asset to your company . I am able to once again look others in their eyes. Is a Merchant Cash Advance (MCA) ruining your business cash flow? We dont benefit from getting you to hire our law firm, but instead, we benefit when we get the job done for you. But there's nobody outside.". 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. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. Any representative that will speak with you will have a minimum of 10 years experience. Click Here to be Directed to a separate page. 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. Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. We work to advance government policies that protect consumers and promote competition. 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 didnt feel rushed or like I was being blown off. Mike spent time communicating with me either by e-mail or phone. Failure to do so is a violation of the FDCPA, and we will sue them for you. Search the Legal Library instead. Readily responds to questions and concerns in detail. 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. It shows the kind of threatening language described in lawsuits by the FTC and the state of New York. And for . But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. We are so pleased with the results.I know we could not have been successful without their help. You pay for our performance and thats what we do we perform! So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. Merchant cash advances are like payday loans, but for businesses and often have triple-digit interest rates. Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. 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. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. 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.. ), "If you don't send money to me today you're done," said a recent text shared by a business owner. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. A merchant cash advance is just one way to secure financing for your business. An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. 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 can defend you in court if you were sued to buy time and even to successfully defend a judgment from being entered if prove your MCA to be a loan rather than an actual advance. A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. 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. It is your debt and your money, soyou have the final say in all of our negotiations. Bronx, NY 11-24-15 review posted on Yelp. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. 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. Anne G. Brooklyn, NY 1-2-2017, I was very pleased with the legal services I received from the Dramer Law Firm regarding settling a debt collection matter with a very stubborn collection service J. V. Cobleskill, NY. For how long? IE 11 is not supported. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. 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. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. 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. 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. 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. 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. 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 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! Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. An official website of the United States government. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. 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. 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. 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. This benefits you when we contact these companies on your behalf, they know the accounts will get resolved and therefore we are usually able to avoid legal action! Floral Park, NY. Need an experienced Merchant Cash Advance attorney? Merchant cash advances are a short-term form of business financing. Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. 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. 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. Their profit or loss derives from future receivables whereas a loan company profits on the interest rate. 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. 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 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. 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. We'll get back to you within 5 . In summary, a Merchant Cash Advance company does not lend and charge interest but instead purchases your future receivables. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! 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 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. 12-14-17, They were very helpful. In addition to the initial advance, the MCA provider will also charge a fee for the transaction. Call the police I don't care.". Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. When they reached $70,000 a month, he had trouble paying his vendors. "I don't see how companies that are collecting future receipts can be litigating against companies that don't have any receipts," Indelicato said. 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.
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