Legal Briefs

Sneaky Debt Settlement Company Temporarily Restrained by Judge

May 20, 2018
Article by:

lawyer going to the courthouse

A debt settlement company has sunk to new lows, according to a petition filed by Yellowstone Capital in Nassau County. Defendants SMCA, Inc. DBA Settle My Cash Advance, Thassos.com Corp DBA Thassos.com, and George Alexander, have been accused of fraudulently transferring funds owed to Yellowstone Capital to themselves while trying to mask the evidence in […]

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Merchant Cash Advances Are Not “Masked” Usury or Loans

May 17, 2018
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court ruling

A New York Supreme Court judge cited the decision rendered in Champion Auto Sales, LLC et al. v Pearl Beta Funding, LLC on Wednesday, when she dismissed usury claims brought against four merchant cash advance companies. The case at issue was Wilkinson Floor covering, Inc., Stephen Wilkinson v Cap Call, LLC, TVT Capital, LLC, Yellowstone […]

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Judge Grants Restraining Order Against Deceptive Funding Company

May 6, 2018
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Court Order

JTT Funding, the company previously accused of having forged a Confession of Judgment, stands accused now of stealing the identity of a rival funding company. On May 3rd, New York Supreme Court Judge W. Franc Perry granted an injunction against JTT Funding from using the name, logo and likeness of Accel Capital from its marketing […]

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Despite Movement of Negative Bill for MCA and Factoring Industries, Hope for a Solution

April 23, 2018
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https://debanked.com/2018/04/what-got-said-in-the-california-senate-hearing-about-commercial-loan-disclosures/

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 […]

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Champion Auto Sales Decision Brings Closure to Another Case

April 1, 2018
Article by:

law books

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 […]

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Lawyers Weigh in on Champion Auto Sales, LLC v. Pearl Beta Funding, LLC

March 22, 2018
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lawyer going to the courthouse

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 […]

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Debt Relief Scammers’ Assets To Be Auctioned Off

March 20, 2018
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bmw i8

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 […]

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It’s Settled, Merchant Cash Advance Not Usurious

March 15, 2018
Article by:

Court Order

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 […]

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Princeton Alternative Funding Files Chapter 11

March 9, 2018
Article by:

bankruptcy court

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 […]

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The Madden Decision, Three Years Later

February 18, 2018
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Thurgood Marshall United States Courthouse

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 […]

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