Before sharing sensitive information, make sure youre on a federal government site. Debt Settlement can be a great option for some business owners, but for others it can be horrible! Need an experienced Merchant Cash Advance attorney? The Law Offices of Kenneth H. Dramer are extremely knowledgeable and dedicated. 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 New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. Bob & I wish you a Happy, Healthy Holiday Season. Business is hurting, Kight said by phone. 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)! 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. FTC official: Legal 'loan sharks' may be exploiting coronavirus to North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. Still, the virus isn't the worst of Indelicato's woes, he told NBC News. Heres why: Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. "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. For more information on how the FTC handles information that we collect, please read our privacy policy. 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. All this just to get you to sign on the dotted line. Lines Of Credit, Business Loans, & Merchant Cash Advances . Three federal rulings scrutinize the business model on which merchant cash. 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. 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. They are filed without a business' knowledge; merchants often learn about them when they try to pay their employees and find their accounts blocked, the lawyers say. Debt relief is an important decision, and we wont rush you! 7-7-2017, The Law Offices of Kenneth H. Dramer P.C Attorneys at Law were efficient in handling by bankruptcy case. Michael Atleson, Attorney, FTC Division of Advertising Practices, Competition and Consumer Protection Guidance Documents. The best decision we could have made was to begin the debt settlement process. 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. We never agree to anything without first consulting with you and getting your approval. Put our experiencedMerchant Cash Advance Settlement Attorneysto work for you. 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. Thanks! JC, Queens, NY. Once hired the process was thoroughly explained to me and it was about as effortless (at least on my end) as humanly possible. This saves time for you and eliminates any extra stress for you as time is money and being stress free is just as important as being debt free! Merchant Cash Advance Lawsuit - Business Debt Law Group Comments and user names are part of the Federal Trade Commissions (FTC) public records system, and user names also are part of the FTCscomputer user recordssystem. Some business owners said they are being swamped with new texts and emails offering funds. 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. "Their strategy was always to get more," he said. Once retained, we immediately send a copy of our Limited Power of Attorney to your creditors, debt-collectors, or attorneys. The complaint alleges that these practices violated the FTC Act. "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." They advised me every step of the way through the difficult process of bankruptcy. These companies arent proactive, they put no effort into negotiations, they dont even return your calls let alone calls from collectors! The case will be decided by the court. Office of The Attorney General A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. 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. Merchant Cash Advances can be discharged through bankruptcy. The biggest . The FTC had previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich. Once retained, we waste no time in taking action. Now half year later we are debt free, no need to worry from phone calls from debts collectors. 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. At the time of underwriting or any time since then, if you have provided your funder with: then you can assume that within a day or two of filing a UCC lien against you, your funders will send a copy of the UCC lien to anyone they know of that pays you! We offer all debt relief options and we service our clients like family. trade references (of which some are your customers); bank statements (they will looks through your statements to see who pays you); or. 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 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, COJs can still be filed against you outside of New York, There have been an increased number of lawsuits filed in New York, The funders that gave you their money do want to make an obscene profit over a very short period of time, but to do so, you have to pay back the money you owe so, so they do not care if you pay all the money back or not, brokers will often set business owners up to fail, If you fail to pay back the borrowed funds . I am eternally grateful to you and the rest of Dramer Law. Not only did you get me out of debt but you gave me a freedom that cant be described. Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. We will take our time with you and help evaluate what your best course of action should be. Sincerely , Robert & Michele A. Whitestone, NY 5-25-2015, Dramerhandled my case very professional. Get to keep our house and car, even our credit score went up. Now, amid the coronavirus crisis, the lenders have come for their money. Their price is very reasonable. ", Full coverage of the coronavirus outbreak. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. Other companies and law firms offer debt relief we specialize in it! How to Defend Against Merchant Cash Advance Lawsuits Ive said it once, and Ill say it again you are greatly appreciated! All settlements are represented as a percentage of the debt paid back. Small businesses have borrowed billions from unregulated merchant cash advance companies. It is your debt and your money, soyou have the final say in all of our negotiations. In our case there is no way we canpayoff everything. 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. I kept hoarding mail and it overwhelmed me. 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. Our staff is trained to ask the right questions to make sure that no stone in your financial picture goes unturned. We would like to say Michael Sininsky is an asset to your company . "You can't have people freezing assets and demanding payments at a time like this. An official website of the United States government. Three merchant cash advance companies are facing a lawsuit from New York Attorney General Letitia James over reportedly practicing illicit measures when loaning money to clients, according. These estimates they will give you are known for setting unrealistic expectations as they will make your potential savings out to be more significant than what their actual results tend to yield. Have you tried to refinance an MCA and were denied? Before sharing sensitive information, make sure youre on a federal government site. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. A lender is. Granted, they have specific clauses in their agreements to protect themselves from you closing your merchant account purposely to avoid paying, but if its open and just not receiving funds, nothing should be paid to them if it is a true MCA. The case against Jonathan Braun is pending. 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. 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. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! Merchant Cash Advances can be discharged through bankruptcy. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. 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. 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. 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! The complaint also cites examples of businesses being left with bank overdraft fees as a result of the unauthorized withdrawals. 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 PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). 12-14-17, They were very helpful. Report it to the FTC. 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. That must change, Chopra said. 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. 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. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. 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. Thank you from the bottom of our hearts for all of your efforts in getting us through this! 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. 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. 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. He didn't talk too much about how it was secured or the workings of it.". "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.". Business owners like yourself caught in high-cost Merchant Cash Advance traps. Learn more about your rights as a consumer and how to spot and avoid scams. 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. Specifically, the complaint states that Yellowstone promised that business owners would not be required to provide collateral or be subject to a personal guaranty. Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. Many of them ask what we want to do?.. 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. The flood receded when New York courts stopped accepting electronic filings in nonessential matters on March 23. 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. Do you need help with a Merchant Cash Advance lawsuit or legal issues? Our business debt attorneys and arbitrators have successfully worked with many struggling business owners who werent able to qualify for traditional bank funding who were then forced to pledge future receivables to one or more Merchant Cash Advance companies for the capital they needed. We work to advance government policies that protect consumers and promote competition. They were so helpful at a very difficult financial time in my life. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. 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. 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. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared. They can make all the difference when you're in a situation where you need access to money immediately. 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. 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. Most of the debt was in my name so I contacted Dramer Law . This COJ caused further recourse and hence, was deemed to be a loan rather than an actual advance, thus voiding the contract. Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. We serve clients in English & Spanish. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. Thats a savings of $61, 000.500 , or a 70% discount off our balances. Your thoughts, ideas, and concerns are welcome, and we encourage comments. 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. Advance . It's an alternative form of financing unfamiliar to many small business owners. We have worked hard over the years to earn the reputation we have by giving honest advice to those in need rather than the advice that benefits our bottom line! 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. 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. As I mentioned before the only thing is Im interested to see when the payments Ive made start showing up on my credit report as its still very low. 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. Settlement companies will harp mainly on the amount of money you should expect to save and that they will cut your payments in half. 7 Ways to Get Out of a Merchant Cash Advance - Hasanov Capital The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. 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. Floral Park, NY. It is our goal to help you find the right funding solution for your unique needs and situation. If you do, you must create a user name, or we will not post your comment. Keep up to date get updates with latest topics. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. 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. 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. A small-fleet owner received this text from a merchant cash advance provider. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. Call the police I don't care.". But aggressive lenders are still trying to extract money from their empty coffers. You will be assigned a specific member of our team that will be in constant contact with you throughout the process. All settlements are represented as a percentage of the debt paid back. With an added personal guarantee, it gave recourse to the MCA lender to collect, even if the merchant account was not performing, thus additionally reducing the MCA purchasers risk of not being repaid. 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. 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. Its okayweve got this! A close analysis will be required to determine the applicable lawsuit defense strategies for each type of business debt. as well as any of your customers that pay you! 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. But, in the lawsuit, Attorney General James alleges that the Richmond companies' merchant cash advances are in fact illegal, high-interest loans with astronomical and illegal rates. Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. 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. A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted.". Our debt relief representatives will be sure you understand the cost benefits and will be sure to disclose our fees fully. Looking for legal documents or records? Whether or not a broker was involved, we have helped countless business owners that were sued traditionally or have signed COJs. Our Relief Specialists are NOT Paid a Commission so there will be no sales pressure at our law firm. "You will end up hurt. 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. 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 have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. Bronx, NY 11-24-15 review posted on Yelp. 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. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". The .gov means its official. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. They will tell you that you only have to make one payment into an escrow account and theyll settle your balances for less making MCA debt settlement seem like a walk in the park. SoloSuit can help you take a stand and win in court. 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. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. If they do provide legal advice, they are doing so illegally, and it may not be accurate! However, they often come with high fees and confusing terms. We have years of experience dealing with most Merchant Cash Advance Lenders. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. We were thankful that he had our 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. 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 . Highly recommended. G.P. The Merchant Capital decision is very good news for MCA companies doing business with Florida merchants. IE 11 is not supported. It is your choice whether to submit a comment. Michael was always professional and courteous as well as efficient . Merchant Cash Advance Lawsuits - Global Legal Law Firm Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. We offer many different services for those struggling with debts including Business Debt Relief, Mortgage Relief, Tax Relief, & Student Loan Relief. Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. We research all over the internet and called many law firms and layers. Is A Merchant Cash Advance Right For Your Business? - Forbes 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. There is no obligation to retain our services. I feel as though a weight has been lifted that burdened me physically and mentally for a long time. The complaint was filed in the U.S. District Court for the Southern District of New York. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Franchisee Conversations with Chair Khan, A just-announced settlement will return more than $2.7 million to consumers, previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich, Franchises, Business Opportunities, and Investments, The Luring Test: AI and the engineering of consumer trust, Franchise Fundamentals: Debunking five myths about buying a franchise, A required action after refraction: FTC staff sends cease and desist letters about Eyeglass Rule compliance, The 411 about FTC-Florida AG action against Chargebacks911. MCAs and Loans also differ in that loan payments need to be paid regardless of receivables coming into your account. Highly recommended. 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. 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.
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