Industry News

Fall Behind on These Loans? You Might Get a Visit From Gino

December 6, 2018

Source: Bloomberg News

Small-business lending was once infiltrated by the mob. Today it’s again a magnet for crooks, including some with alleged ties to organized crime.

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Senators Call for Ban on Confessions of Judgment

December 6, 2018

Source: Bloomberg News

Senators Sherrod Brown, the top Democrat on the Senate Banking Committee, and Marco Rubio, a Florida Republican, said they will submit a bill on Thursday that would ban the use confessions of judgment, a debt-collection practice that has devastated thousands of small businesses across the county.

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Small Businesses Fall Victim To Merchant Cash Advances

December 4, 2018

Source: NPR Radio

Anybody who’s taken out a loan knows you have to sign a stack of papers. Maybe you read them. Maybe you don’t…..but some of the documents guarantee the rights of the lender. And some small business borrowers, who have fewer protections, have discovered a document they signed that cost them everything. 

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New York State Is Probing Abuses in Small-Business Lending

December 3, 2018

Source: Bloomberg News

New York’s attorney general has opened an investigation into potential abuses by finance firms that offer quick money to small businesses nationwide, according to a person familiar with the probe.

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A drug smuggler built a predatory lending company while free on bail

December 3, 2018

Source: Bloomberg News

“I will make sure you lose literally everything you’ve had in your entire life…I am going to take your children and your house and everything you f—ing have, and I will destroy it.”

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Protect Small Businesses From Predatory Lending

November 28, 2018

Bloomberg Editorial Board

If you knew what you were doing, would you sign a contract allowing a company to sue you and take your money whenever it wanted, with no proof, warning or legal recourse?

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The $1.7 Million Man

November 27, 2018

Source: Bloomberg News

Meet New York City’s highest-earning official. He’s a debt collector for predatory lenders.

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MCAs – salvation for small businesses or payday lending reincarnate?

November 20, 2018

Source: Yahoo Finance

In the past decade since the financial crisis, the merchant cash advance business exploded.  But as lawsuits and defaults pile up — and a search of court dockets reveals thousands of each — there are growing questions about what this industry actually is.

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“I Hereby Confess Judgment”

November 20, 2018

Source: Bloomberg News

How an obscure legal document turned New York’s court system into a debt-collection machine that’s chewing up small businesses across America.

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New CA Bill to Require Rate Calculation

August 8, 2018

Source: Bloomberg News

Online lenders operating in California such as LendingClub Corp. and OnDeck Capital Inc. would be required to ditch the annual percentage rate (APR) in favor of a new metric when disclosing small-business loan costs if a bill before California’s Assembly becomes law.

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Comparing the Cost Of Borrowing

June 8, 2018

Source: McClatchy DC

With more than a decade of experience working in finance, Wesley Kennedy is savvier about money than the average small businessperson. But when he turned to nontraditional, online companies for the financing, he was surprised by what he saw.

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Danger of Unregulated Funding Options

June 7, 2018

Source: McClatchy DC

When unexpected construction costs threw their budget off, married co-owners Mariana Cortez and Sebastian Ghiragossian turned to a couple of online companies that promised them all the cash they needed in a matter of days. It started a world of hurt.

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The High Cost of Cash Advances

December 1, 2016

Source: Money Magazine

Short-term financing known as merchant cash advances are getting some small businesses into hot water financially.

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High-Cost Credit Better than No Credit? Not Necessarily

May 31, 2016

Source: American Banker

A recent opinion piece in The Wall Street Journal discusses an interesting research study about the short-term impact on poor-credit borrowers of the usury case Madden v. Midland Funding LLC.

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The Seedy Underbelly of Merchant Cash Advance Business

October 6, 2015

Source: Bloomberg Business Week

How two guys lost god, found $40 million, and sold Wall Street on a shady new kind of finance.

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