In contrast, the New York Supreme Court of Westchester County decided Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc. on October 25, 2016. Being debt free is such a relief- now we can move forward and put our money toward our kids college educations and save for our future.I am happy to recommend them and am so glad I contacted them a few years ago. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) 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. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? 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. We will explain in great detail all aspects of each process including the risks & fees not just how much money you can save. The advance company can enforce its claim on any collateral pledged to secure their funds through seizure or repossession of business assets. as well as any of your customers that pay you! I wasnt even their client at this point and they were already going above and beyond. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. The FTC had previously settled with defendants RAM Capital Funding, LLC and Tzvi Reich. Other companies and law firms offer debt relief we specialize in it! 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. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week. 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. Arverne, NY 2-6-17, Happy new year! From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. 5-26-16, I am very grateful of Michael Sininskys assistance to get through the process. Signed a Confession of Judgment (COJ) or Being Sued For Your Personal Guarantee? Search the Legal Library instead. A True Merchant Cash Advance is NOT a loan. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Opinions in comments that appear in this blog belong to the individuals who expressed them. 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. Small businesses are struggling right now and need responsible sources of financing, said Andrew Smith, Director of the FTCs Bureau of Consumer Protection. This is called a merchant cash advance. Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. An Experienced Business Debt Relief Attorney Can Spot the Difference and Sue your MCA Lender for YOU to Void Your Contract! sincerely Mr & Mrs. Vogel, NY 12-15-14. Readily responds to questions and concerns in detail. The Commission vote authorizing the staff to file the complaint was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating. 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. 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. The underlying lawsuit involved several commonly litigated issues in the MCA space, and the court unambiguously came down on the side of the MCA company. Merchant Cash Advances can be discharged through bankruptcy. Be well. Mary R. Bayshore, NY 4-30-2018, I would highly recommend Dramer Law for your debt settlement needs. 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. Instead of lending an amount of money over a period, a Merchant Cash Advance company will purchase your companys future receivables coming into your merchant account. Merchant Cash Advance business debt collection and litigation can now be aggressively defended against on the merits instead of dealing with confession judgments. Dial 516-670-5165 right away. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. Runion said he told the cash advance companies that he didn't have the money to pay them. Merchant Cash Advances came about during the 2008 lending crisis when banks were refusing to lend to most small businesses. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. 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. Under a typical deal, a business might receive $40,000 in exchange for agreeing to hand over $50,000 in future revenue over a few months. 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. Do you want to reduce your payments with our cash advance repayment options? The case against Jonathan Braun is pending. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. 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. I am eternally grateful to you and the rest of Dramer Law. I can not thank you enough for giving me freedom from debt. They can make all the difference when you're in a situation where you need access to money immediately. The best decision we could have made was to begin the debt settlement process. We'll get back to you within 5 . Any representative that will speak with you will have a minimum of 10 years experience. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Learn more about your rights as a consumer and how to spot and avoid scams. Soon after he received the money, the amount of the repayments began rocketing, Runion said. We can negotiate the principal balance owed to a lower payoff amount so you can literally pay back less than you owe. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! If youve answered YES to any of these questions, then our Merchant Cash Advance Relief Attorneys can help! Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. receive our Limited Power of Attorney, they are obligated to contact us directly on your behalf. 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. The biggest . To file a detailed report about a scam, go to. We would like to say Michael Sininsky is an asset to your company . 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. Their price is very reasonable. We have heard many horror stories. NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. Without truly understanding the risks, how can you make an educated decision as to whether or not debt settlement is going to be right for your business? The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Any fees paid to Dramer Law were very fair and minimal compared to what I was paying to the credit card companies each month. This has been a long journey and you have taken us through it just as you promised. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." An official website of the United States government. Heskin, who testified last year before Congress about the lenders' tactics, said one of his law partners found a disemboweled rat splayed atop his mailbox in front of his home. Unless your case involves one of our attorneys having to go to court, our negotiation service fees are flat fee based not charged hourly. The site is secure. He was kind, calming and very thorough. 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. Our Law Firm is Known for Helping Business Owners With This Niche Area of Law (see below). 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. 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 New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. "You will end up hurt. 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.". Report it to the FTC. He is very professional and extremely helpful. These actions cause collectors to seek other measures to collect, often meaning lawsuits. Lillian L. Queens, NY 7-20-2015, To Whom It May Concern , We would like to thank Michael Sininsky and your law firm for helping us get out of debt and back on track . 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! According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Keep in mind the greater the downsides a choice may have the greater the potential for savings. ! All this just to get you to sign on the dotted line. When the business owners call to find out what is going on, they quickly find out that no progress has been made! We do not only offer one path, as no one process can solve everyones needs. 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. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! On March 23, Kayla Kight, a server at a Lone Spur in Prescott, Arizona, told NBC News that hers was the only restaurant in the group open for business and that it was just providing takeout. Rather than infuse the business with necessary funds, the MCA eats away at the businesses revenues and cash, until the ACH repayments (daily or weekly) become cost prohibitive and inevitably impossible to repay. 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. 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 . When they reached $70,000 a month, he had trouble paying his vendors. The first missed payment invokes the lender's right to pursue you and your business. That must change, Chopra said. 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. We expect commenters to treat each other and the blog writers with respect. 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. 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 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! Mike Thank you so much for your help. By doing so, the MCA purchaser is taking the risk that your business may potentially not have any future receivables. We have years of experience dealing with most Merchant Cash Advance Lenders. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. 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. If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. 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. 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. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. 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. Approach a Merchant Cash Advance Attorney Hire a lawyer skilled in debt settlements and bankruptcy for your MCA debt. Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. 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. A similar case Platinum Rapid Funding Group Ltd. v VIP Limousine Services., Inc. can be found here. Its basically free money! We can negotiate a break from payments for a period helping you to strengthen your cash flow and give you some breathing room. 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! Download the NBC News app for full coverage and alerts about the coronavirus outbreak. On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. A Merchant Cash Advance is not a set term as the purchaser is paid back as funds come into your merchant account.

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