Is a Merchant Cash Advance (MCA) ruining your business cash flow? 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. Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. We offer all debt relief options and we service our clients like family. We can negotiate to lower your daily or weekly payments which will extend the terms of your payback. If you have multiple lenders, the first to obtain a judgment puts themselves in a priority position to try and garnish bank accounts or levy against your assets. An official website of the United States government. An email to PowerUp requesting comment received no response. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. 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. The complaint also cites examples of businesses being left with bank overdraft fees as a result of the unauthorized withdrawals. If funds do not come into your merchant account, the MCA company should not collect. The flood receded when New York courts stopped accepting electronic filings in nonessential matters on March 23. Pravati Capital embroiled in multiple disputes with clients. In this case, the FTC alleged that Yellowstone and its owners continued withdrawing money from businesses' bank accounts for days after their balance had been repaid. Of course I want to thank you further than what I wrote. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. 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! 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. It is our goal to help you find the right funding solution for your unique needs and situation. 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. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. 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. Mike spent time communicating with me either by e-mail or phone. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. Lines Of Credit, Business Loans, & Merchant Cash Advances . FTC takes action against merchant cash advance providers He didn't talk too much about how it was secured or the workings of it.". 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. For how long? We wont post threats, defamatory statements, or suggestions or encouragement of illegal activity. In a return email, he said the firm had decided to stand down for the moment. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). 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. Our MCA Settlement Attorneys and debt relief negotiators have combined decades of experience in contract renegotiation. Bronx, NY 11-24-15 review posted on Yelp. Clients Cry Foul Over Litigious Litigation Finance Company (4) I literally was paralyzed by fear and could not even face the mail. 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. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. Merchant Cash Advance Defense: How to Protect Yourself From Lawsuits 12-14-17, They were very helpful. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. I thank the company and Michael for giving me peace of mind at this point. Sue R. Allegheny Co, PA 6-15-15, I would like to express my gratitude for your perseverance in assisting me through the toughest time of my life. We research all over the internet and called many law firms and layers. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. Learn more about your rights as a consumer and how to spot and avoid scams. Beat Everest Business Funding in Court | SoloSuit Blog 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! Failure to do so is a violation of the FDCPA, and we will sue them for you. Before sharing sensitive information, make sure youre on a federal government site. They may also help you negotiate for debt relief or a settlement plan. When they reached $70,000 a month, he had trouble paying his vendors. Business is hurting, Kight said by phone. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Well send out a limited power of attorney notice to anyone trying to collect money from you to make sure that they contact our Law Firm instead of contacting your company. 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! Get to keep our house and car, even our credit score went up. In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. Its an alternative form of financing unfamiliar to many small business owners. Thank you for helping me. 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. My husband and I owed a lot of debt due to closing of our business, but we still tried to payoff debtors little by little. We never agree to anything without first consulting with you and getting your approval. Call us for a free consultation at (866) 890-7337 or click here to send us a message Steps You Can Take to Defend Yourself While a confession of judgment doesn't give you many options, it's not ironclad. 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. A few years ago I could not imagine a way out of this hole that I dug myself. Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. The best decision we could have made was to begin the debt settlement process. Do you want to reduce your payments with our cash advance repayment options? "We have no intention of pursuing this matter at the present time," Feldman wrote. Any questions I had were addressed rapidly and any messages I left were returned promptly. "You can't have people freezing assets and demanding payments at a time like this. You will be given all the facts you need, and then you will be given plenty of time to think things over. He said the companies have almost killed his business. The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Merchant Cash Advance Attorney Florida - Grant Phillips Law Do you need help with a Merchant Cash Advance lawsuit or legal issues? Highly recommended. "Their strategy was always to get more," he said. 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. Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. Any representative that will speak with you will have a minimum of 10 years experience. North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. At that point, the business owners then fire the debt settlement company and hire us for real help. Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. as well as any of your customers that pay you! Your thoughts, ideas, and concerns are welcome, and we encourage comments. 4-6-15, Recently we finished the debt relief program through Dramer Law. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. Mr. Sininsky was personable, honest, deligent, and stayed in communication with me every single step of the way. 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. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. This is called a merchant cash advance. Our debt relief representatives will be sure you understand the cost benefits and will be sure to disclose our fees fully. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. Find the resources you need to understand how consumer protection law impacts your business. Not only did you waste money in fees to the settlement company, but your funders have now all assessed extra fees per their contract which typically include: DONT FALL THE FOR DEBT SETTLEMENT LIES. 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.
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