Legal Briefs
Despite Movement of Negative Bill for MCA and Factoring Industries, Hope for a Solution
April 23, 2018
Last week, California State politicians gathered for a hearing on SB 1235, a bill that would require the disclosure of an Annual Percentage Rate (APR) for all loans and non-loans, including MCA and factoring products. This is very problematic because APR (which includes interest rate) cannot be calculated for most MCA and factoring products for […]
View PostChampion Auto Sales Decision Brings Closure to Another Case
April 1, 2018
A merchant seeking to have a judgment against them voided on the basis that the underlying Purchase and Sale of Future Receivables agreement they entered into was actually a usurious loan, has had their motion denied pursuant to the law as decided in Champion Auto Sales, LLC et al. v Pearl Beta Funding, LLC, court […]
View PostLawyers Weigh in on Champion Auto Sales, LLC v. Pearl Beta Funding, LLC
March 22, 2018
In light of the recent Champion Auto Sales, LLC et al. v Pearl Beta Funding, LLC decision, which decided that the particular MCA contract at issue “was not a usurious transaction,” deBanked spoke to a handful of lawyers, including the plaintiff’s lawyer, Amos Weinberg, to get their thoughts on the decision. Amos Weinberg […]
Debt Relief Scammers’ Assets To Be Auctioned Off
March 20, 2018
A crew of debt relief scammers that carried out an $80 million fraud are having some of their assets auctioned off in Pompano Beach, FL this week. Among them a Tesla, BMW i8, Range Rover and custom luxury buses. According to the FTC and the State of Florida in a lawsuit they filed against Jeremy […]
It’s Settled, Merchant Cash Advance Not Usurious
March 15, 2018
It’s not a usurious transaction. That’s how trial courts across New York State have been ruling on merchant cash advances for years, but now, thanks to Champion Auto Sales, LLC et al. v Pearl Beta Funding, LLC, the matter has been settled in a key jurisdiction. On Thursday, March 15th, The Appellate Division of The […]
Princeton Alternative Funding Files Chapter 11
March 9, 2018
Princeton Alternative Funding LLC filed for chapter 11 on Friday, court records reveal. A related entity, Princeton Alternative Income Fund, LP, also filed for Chapter 11. Princeton Alternative Funding provides capital for businesses that make consumer loans in the non-prime market. The Princeton Alternative Income Fund was previously reported to be a woe affecting Ranger […]
The Madden Decision, Three Years Later
February 18, 2018
Above: United States Court of Appeals for the Second Circuit. New York, NY This story appeared in deBanked’s Jan/Feb 2018 magazine issue. To receive copies in print, SUBSCRIBE FREE At first, reversing the 2015 Madden v. Midland Funding court decision, which continues to vex the country’s financial system and which is having a negative impact […]
Kalamata Capital / Biz2Credit Lawsuit Settled
January 31, 2018
An old dispute between Kalamata Capital and Biz2Credit came to an end today, according to court records. A stipulation of discontinuance with prejudice was filed that confirmed the parties had settled all matters between them. Kalamata Capital had originally brought the action against Biz2Credit in December 2014.
Law Firm Sued for Tortious Interference With Loans and MCAs
January 31, 2018
Rhode Island Superior Court has a tortious interference case on its hands. Small Business Term Loans, Inc., and BFS West, Inc. v Christopher M. Mulhearn, and Law Office of Christopher M. Mulhearn, Inc. is yet another front in the debt settlement war enveloping the alternative finance industry. Here, the plaintiffs (known to many as BFS […]
Default Judgment Against MCA Company Vacated
January 30, 2018
A default judgment against a South Florida merchant cash advance company has been vacated, according to court records. 1st Global Capital fell victim to a mishap last November when they failed to a respond to a lawsuit defendant’s counterclaim of usury. 1st Global, who learned about it through a blog post, responded by filing a […]
