Legal Briefs
World Global Financing Bankruptcy Converted to Chapter 7
August 9, 2018
Florida-based World Global Financing (WGF), who filed for Chapter 11 in May, has been ordered into liquidation following their failure to abide by the settlement agreement with Eaglewood SPV I LP. Eaglewood’s claim on WGF comprised 98% of all creditor claims. WGF agreed to settle with Eaglewood for $2.95 million, but WGF failed to make […]
View PostDetails Emerge in Florida Lawsuit Against Corporate Debt Advisors
August 9, 2018
A debt settlement company being sued by Itria Ventures in Miami-Dade County, FL was asked to prove its claim that it has managed over $1.5 billion in total debt, court records show. That company, Corporate Debt Advisors (CDA), advertises that it provides debt relief for small business owners. CDA responded to Itria’s request on June […]
View PostNotorious Tampa Bay Loan Broker Likely Headed Back to Jail
July 27, 2018
Tampa Bay loan broker Victor Clavizzao pleaded guilty this week to one count of wire fraud, which could land him in prison for up to 20 years. This would not be his first time behind bars. In 2009, a federal judge sentenced him to five years for conspiring to fraudulently obtain nearly $6 million in […]
JTT Funding STILL Impersonating Rival Funding Company, Court Docs Allege
July 26, 2018
A Court-ordered injunction hasn’t prevented New York ISO JTT Funding from continuing to pretend to be Accel Capital, a new motion filed in New York County this week argues. In May, JTT Funding failed to appear in court to defend itself against claims it was impersonating Accel Capital when contracting with merchants. After reviewing the […]
Like Bureau of Consumer Financial Protection, Court Declares FHFA Unconstitutional
July 19, 2018
The Bureau of Consumer Financial Protection (Bureau), created largely by Democratic politicians in the wake of the 2008-10 financial crisis, has not been the most popular government agency under the current administration. That said, a June court decision declared that the agency itself is, in fact, not very democratic. The controversial decision came from District […]
California Bill May Disadvantage Small Brokers
July 17, 2018
A California State Assembly bill that carefully defines what a broker is, could significantly affect small, unlicensed brokers, according to Tom McCurnin, an attorney at Barton, Klugman and Oetting in Los Angeles. Assembly bill 3207 enumerates the ways that the bill would depart from the current law. Most notably, the definition of a broker would […]
How to Avoid Being Sued by a Professional TCPA Plaintiff
July 13, 2018
Michael O’Hare, CEO, Blindbid Did you know that if you receive an unwanted solicitation call on your private cell phone or residential landline, you can win between $500 and $1,500 in damages from the offending company? The company can be charged for violating a statute of the 1991 Telephone Consumer Protection Act (TCPA), which prohibits […]
MCA Funder Says Debt Settlement Company Operating Illegally Without a Budget Planning License
July 11, 2018
Merchant Cash Advance companies are on the warpath against debt settlement companies. In the latest legal offensive, High Speed Capital alleges that Corporate Debt Advisors’ debt settlement business is really just an unlicensed Budget Planning operation, a misdemeanor criminal offense in New York. High Speed’s petition cites New York General Business Law § 455. “So-called […]
Usury Argument in Merchant Cash Advance Suit Backfires Horribly
June 25, 2018
A New York Supreme Court judge in Erie County, New York has had enough with attorneys trying to argue that merchant cash advances are loans. In Yellowstone Capital, LLC v. Central USA Wireless, LLC et al (Index No: 811837-2017), the Honorable Timothy J. Walker balked at the defendants’ argument that the MCA agreement was usurious. […]
Lawyers Weigh in on Federal Decision That CFPB is Unconstitutional
June 22, 2018
In light of a federal court ruling yesterday that the structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional, deBanked spoke with some lawyers to get their perspective on what this decision could mean. Alan Kaplinsky, Partner, Ballard Spahr Alan Kaplinsky, Partner, Ballard Spahr “I think it will sow more confusion related to the […]
