January 21, 2019- Kohn, Swift & Graf is currently investigating a predatory lending scheme within the $15 billion a year merchant cash advance industry.
A DEVIOUS PLAN
Predatory cash advance companies have found a new way to bilk consumers out of money. Media outlets report that companies like Yellowstone have forced unknowing borrowers to sign away any legal recourse in the event of a missed payment or default, resulting in legal judgments, account freezes, and the loss of thousands upon thousands of dollars.
Here’s how it works:
Cash advance companies send unsolicited letters to individuals known to seek out business or personal loans. There letters promise high dollar value cash advances with low interest rates. The catch is that borrowers first have to sign a contract with fine print, giving up their legal rights in the event of a missed payment or default. Additionally, borrowers have to pay off a high interest “teaser” loan in order to qualify for the promised one. This teaser loan requires large daily payments towards the principal balance, and one late payment can trigger legal consequences.
Several consumers have reported entering into these cash advance arrangements only to find, days later, that their accounts have been frozen and that legal judgments have been entered against them.
If you or someone you know has been a victim of this predatory lending scheme, please contact us. All consultations are free of charge. You may be eligible to be included in a Class Action Lawsuit.
Kohn, Swift & Graf is a national leader in class actions, including complex consumer litigation. With experienced consumer class action attorneys and a competent support staff, our firm strives to provide the highest quality of service to our clients. We treat each case with careful attention to ensure that consumers get the justice they deserve. KS&G is centrally located in Philadelphia, PA. We handle cases nationwide.