NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. There arent that many reviews on the internet about them and like most people were not sure if we can trust them. 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 underlying lawsuit involved several commonly litigated issues in the MCA space, and the court unambiguously came down on the side of the MCA company. Until we got hit with a summons from the court ( for over 100K lawsuit). I wasnt even their client at this point and they were already going above and beyond. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week. These liens will be sent to your merchant processors (credit card terminal, Square, PayPal, Shopify, etc.) Learn more about your rights as a consumer and how to spot and avoid scams. Please call for your free consultation to speak to one of our trained professionals. 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. 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. If you Merchant Cash Advance position is eating away at your business cash flow and revenues, don't hesitate to contact Texas Merchant Cash Advance Attorney Grant Phillips Law, PLLC - serving clients in Texas and . Runion concedes that he signed the documents that have created the problems. "I tried to make it work," he said, "but I really was unable to.". 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! 2-2-2016, I highly recommend the services of The Law Offices of Kenneth H. Dramer and Michael Sininsky. Mike was able to work with me, keep me calm and focused, and I have gone from being in foreclosure to NOT being in foreclosure!! Need an experienced Merchant Cash Advance attorney? There is no obligation to enroll, so dont delay. "Their strategy was always to get more," he said. 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. 1-21-16. 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. When you work with us, you can. The dual dynamos that power our economy are Americas 32 million small businesses and the more than 60 million people they employ. You will be given all the facts you need, and then you will be given plenty of time to think things over. All of our attorneys, paralegals, and negotiators are dedicated to providing the best possible experience, while achieving results. A merchant cash advance (mca) is not a business loan, rather it is a buyout of future receivables. The .gov means its official. Theyre highly recommended. Rodolfo P. Queens, NY 6-27-2018, Michael Sininsky is professional and responsive in every aspect of all services provided. 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! 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. We do not only offer one path, as no one process can solve everyones needs. 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. The advance company can enforce its claim on any collateral pledged to secure their funds through seizure or repossession of business assets. There have been an increased number of lawsuits filed in New York since the COJ ban has gone into place which is a great thing, as lawsuits can be defended, and doing so will buy you much needed time to either work out a payment arrangement or a discounted settlement payoff. Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. "They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you.". We offer all debt relief options and we service our clients like family. "He more or less presented me the net cash I would receive and the payments. UCC stands for Uniform Commercial Code and these types of liens can be more detrimental to your business than Judgments and COJs. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20. CALL TODAYfor yourFREE CONSULTATIONand let us help you save your business today! They were able to reduce the money I owed to less than the original amount. You should never settle for less when trying to settle for less! 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. Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. Now those sales are nonexistent but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. 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. An email to PowerUp requesting comment received no response. 7-7-2017, The Law Offices of Kenneth H. Dramer P.C Attorneys at Law were efficient in handling by bankruptcy case. According to the, In addition to the $2.7 million financial judgment with RCG and Giardina, the just-announced. 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. "You can't have people freezing assets and demanding payments at a time like this. sincerely Mr & Mrs. Vogel, NY 12-15-14. "Normally we're usually really busy. In addition, the complaint alleges that for years Yellowstone deceived potential customers about the amount of money they would receive, with the amount shown on the contract not reflecting additional fees that would be deducted. Not only did you help me do this, but I have learned some other valuable lessons that are priceless like dont spend beyond your means and if you dont have cash for it dont buy it. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. Hurt bad," one text said. A merchant cash advance is a type of financing that allows small business owners to access funds quickly. 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. The next thing you know, bank accounts and incoming receivables are all frozen leaving the business owner without funds to operate. 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. Most banks offer more conventional small business loans with favorable terms, but longer turnaround times. 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. Sending notice of representation is the first step in curbing any creditor or collector calls you may be receiving. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Making sure that lenders and funders dont deceive business borrowers or engage in servicing abuses is a big priority for the FTC.. This is called a merchant cash advance. Mike handled my case, hes very professional and efficient, he made sure I understand the whole process, any questions I have are answered promptly. Mike spent time communicating with me either by e-mail or phone. On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. This means your customers will receive a letter telling them not to pay you but to pay your funder instead!!! I am able to once again look others in their eyes. We may routinely use these records as described in the FTCsPrivacy Act system notices. It is our goal to help you find the right funding solution for your unique needs and situation. access to your bank account (they will looks through your account to see who pays you), insufficient fund fees (typically $35 per occurrence), stop payment fees (typically $500 $5,000), fees for changing bank & merchant accounts (typically $100 $2,500), 3rd party interference fees (typically $2,500 $5,000). 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. Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. WE PAY YOU A 2 % REFERRAL FEE FOR ANY BUSINESSES YOU REFER THAT WE FUND!!! Very pleased with the results. S.P. Put our experienced Merchant Cash Advance Settlement Attorneys to work for you. Michael, Im gonna miss you! Steven & Esther W. 12-12-14. The only source of capital he could find was from merchant cash advance companies.