The site is secure. We'll get back to you within 5 . Dial 516-670-5165 right away. "We're already seeing a decadelong decline in small businesses. ", Full coverage of the coronavirus outbreak. 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. The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. Before sharing sensitive information, make sure youre on a federal government site. An official website of the United States government. The biggest . Many of them ask what we want to do?.. We were also worried about our credit score, the bankruptcy record will stay in your record for 7 years ( our score were poor anyway). Your promptness, efficiency, and trustworthiness have always been beyond my imagination. They were so helpful at a very difficult financial time in my life. It's an alternative form of financing unfamiliar to many small business owners. Soon after he received the money, the amount of the repayments began rocketing, Runion said. Proactively addresses potential barriers and issues to prepare clients of required actions and response sets. 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 . Call today for your free consultation with an experienced member of our team who will ask the right questions to determine the best course of action. 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. That must change, Chopra said. Until we got hit with a summons from the court ( for over 100K lawsuit). 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. The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance exceeded 1,900%. He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans. North River Outfitter in Beacon Hill, Mass., is owned by Jason and Alice Indelicato. He is very professional and extremely helpful. 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. Your guidance, understanding and expertise were very comforting to us .Of course we are so happy that this situation is now settled. Call or Text "CASH" to Tommy Funding Coordinator/Agent today at 716 906-7233 for quick funding! 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. A True Merchant Cash Advance is NOT a loan. "It's down a lot, more than 50 percent," she said. "Working with a broker, I thought he was going to get me a traditional loan that was how the conversation started," Runion said. A rat was found on the mailbox of a lawyer who represents the customers of merchant cash advance lenders. 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. The complaint was filed in the U.S. District Court for the Southern District of New York. Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. I am able to once again look others in their eyes. Any questions I had were addressed rapidly and any messages I left were returned promptly. We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. All settlements are represented as a percentage of the debt paid back. 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. Put our experiencedMerchant Cash Advance Settlement Attorneysto work for you. But there's nobody outside.". Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. "We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. A non-recourse clause, means the MCA have no recourse or no way to collect if the merchant account does not receive funds. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. 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. Debt settlement companies typically do not discuss any downsides of settling your Merchant Cash Advance obligations. A lender is. 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. 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. According to the FTC, the company threatened people with physical violence, telling one person they would break his jaw if he didnt pay. Small businesses have borrowed billions from unregulated merchant cash advance companies. The merchant cash advance agreements typically allow for these remedies. You can rely on Lendmark for customized loans that are hassle-free and budget-friendly. From communications via phone calls, faxed messages, and e-mails I was able to receive and transmit all the paperwork relevant to my case. Arverne, NY 2-6-17, Happy new year! They were extremely professional and made the process easy! This has been a long journey and you have taken us through it just as you promised. Any email or phone call was returned immediately with answers to each question or concern we had . The first missed payment invokes the lender's right to pursue you and your business. When disputes arise about these cash advances, a lawsuit may occur. When the business owners call to find out what is going on, they quickly find out that no progress has been made! 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. As a provider, you deserve to get paid for the cash you advance. "We have no intention of pursuing this matter at the present time," Feldman wrote. 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. You can further research this case here. Ive said it once, and Ill say it again you are greatly appreciated! But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. "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.". It became a cycle of death. We offer all debt relief options and we service our clients like family. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. Its okayweve got this! The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various. We will be in touch with you throughout the process to keep you informed and are available when you need us. The MCA companies will almost always move to sue the business immediately. 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. Sincerely, Susan M. Commack, NY 3-27-2018, Thank you very much. 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. We wouldnt of call if we know what to do. Very pleased with the results. S.P. We offer many different services for those struggling with debts including Business Debt Relief, Mortgage Relief, Tax Relief, & Student Loan Relief. 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. I have been extremely pleased with the efficient, attentive, reliable service provided by Michael Sininsky. For example, a 40% settlement means that 40% of the debt is paid back and 60% is forgiven. There is no obligation to enroll, so dont delay. I wasnt even their client at this point and they were already going above and beyond. We will work quickly and efficiently to bring a successful resolution to your situation. In this merchant cash advance FAQ, you'll learn about how they work, the repayment terms you'll want to watch out for and how to protect yourself and your business from predatory practices. 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. We have heard many horror stories. There is no fee charged to you if we do not win your case, and if we do win, you can win up to $1,000 per violation, and the collector in violation will pay our attorney fees for you. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. Any representative that will speak with you will have a minimum of 10 years experience. 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. In a return email, he said the firm had decided to stand down for the moment. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. Now half year later we are debt free, no need to worry from phone calls from debts collectors. In hindsight I wish I had declared bankruptcy but this was clearly my decision. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts. Click Here to be Directed to a separate page. Some companies' aggressive, even menacing, collection techniques are documented in video, recordings and emails provided to NBC News. Nothing will be hidden from you as we are a full disclosure law firm. The complaint alleges that these practices violated the FTC Act. In this case, the defendant disputed the plaintiffs MCA due to specific language that was missing in the contract a non-recourse clause. Im so happy we decided to go with Dramer Law and cannot thank Michael enough for all his hard work and professionalism. 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. Once any third party servicer, debt collector, debt purchaser, collection attorney, foreclosure attorney, etc. If they do provide legal advice, they are doing so illegally, and it may not be accurate! Their price is very reasonable. By Michael R. Guerrero & John Sadler on January 13, 2023. 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. I kept hoarding mail and it overwhelmed me. 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. 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. They have access to your bank accounts they can wipe out an account overnight.". Advance . 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! 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. Michael Atleson, Attorney, FTC Division of Advertising Practices, Competition and Consumer Protection Guidance Documents. Many times, when we successfully get our clients out of debt, they still need assistance with other areas of their financial life. Debt relief is an important decision, and we wont rush you! Business is hurting, Kight said by phone. 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. If I had any questions or concerns they would answer any questions very quickly and patiently. 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. Merchant Cash Advances can be discharged through bankruptcy. That is our one and only goal when we go to work for you TO SAVE YOU AS MUCH MONEY AS POSSIBLE! Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street. Debt Settlement can be a great option for some business owners, but for others it can be horrible! To read about this case click here. "I tried to make it work," he said, "but I really was unable to.". 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. Looking for legal documents or records? 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. Each option will have its own savings potential. With just one meeting with you, you gave me hope that just maybe I too could live debt free and once again become a responsible spender. 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. "He more or less presented me the net cash I would receive and the payments. Thanks! JC, Queens, NY. They may also help you negotiate for debt relief or a settlement plan. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. 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. Most of the debt was in my name so I contacted Dramer Law . Thank you from the bottom of our hearts for all of your efforts in getting us through this! 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. 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. 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. 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. All settlements are represented as a percentage of the debt paid back. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". To file a detailed report about a scam, go to. An official website of the United States government. The offers are alluring to owners who often operate on the edge and are strapped for cash. The attorney may advise you to file for bankruptcy after exploring all of your financial circumstances. Hurt bad," one text said. 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. I never felt at anytime like I was getting less than 110% from them. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. MCAs are not considered loans , so they aren't subject to most of the laws that apply to traditional business loans. 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.
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