[isaacdstern]

https://debanked.com/2018/06/settlin...-against-them/

A group of debt settlement companies and ISOs have entered into a settlement they’re unlikely to forget. A lawsuit that accused Corporate Bailout, Protection Legal Group, Mark Mancino, Michael Hamill and others of tortious interference with merchant cash advance contracts has led to a settlement in which the defendants agreed to pay Yellowstone Capital and Everest Business Funding $500,000. They also agreed not to offer any services to Yellowstone or Everest merchants in the future, deBanked has learned.

The original complaint alleged that ISOs had partnered with companies that purport to offer debt relief services to merchants with MCAs. In practice, the complaint said, debt relief was a code word for deceiving merchants to breach their existing agreements so that they could pay fees instead to the debt relief companies.

When asked to comment, Yellowstone Capital CEO Isaac Stern said that there were companies that offer this kind of service the right way but that was not the case here. “The way they’re going about it is really wrong,” he said.

Of note is that the bound parties were not just debt settlement companies but also ISOs and a law firm (Mark D. Guidubaldi & Associates, LLC dba Protection Legal Group).

Additional companies not named in the original complaint but nonetheless bound to the settlement are Mainstream Marketing Group and Corporate Client Services LLC. Websites for both companies say that they offer small business debt relief services.

Coast to Coast Funding LLC, who the defendants represented they had no control of, did not participate in the deal.

The settled matter is not the first of its kind. Everest and Yellowstone have been hammering debt settlement companies with lawsuits this year, according to court records examined by deBanked. In January, Everest sued MCA Helpline and Todd Fisch for tortious interference, and just last month Yellowstone filed a Petition to recover funds that were allegedly fraudulently transferred by Settle My Cash Advance.

In the latter case with Settle My Cash Advance, the defendants are alleged to have actively coached a merchant to hide his money in new bank accounts and hide the paper trail rather than pay the money owed to Yellowstone.

Speaking about no case in particular, Stern said “Imagine getting a commission on a deal [where you help a small business get funding] and then sending it to a debt settlement company. If there are ISOs that are doing that, we’re going to come after you hard.”

[J.Celifarco]

Well done

[Karen37a]

Well done

I agree. I am scared to laugh.

[NoBigDeal]

This is a huge win. Well done Isaac

[Michael I]

bravo

[Mynameisbob]

Hey Isaac. You may want to check into Second Wind consultants.

[patrickw]

Ysc <3

[skideeppow]

i had a couple debt settlement companies call me 10 months ago. I asked them, "you want me to sell your product to my customers? That violates every ISO agreement i ever signed."

They tried to convince me it was a way to make more money off my book of business.

I was like, WTF, do you have any morals?

[isaacdstern]

yes any info would be great. Our current target is settle my cash advance but we have 4-5 others that we got info on that we are going after if we have enough evidence.

Hey Isaac. You may want to check into Second Wind consultants.

[mcaguru]

I saw this news and was smiling so much today... i m certain the group here thinks I'm HIGH

[Michael I]

i had a couple debt settlement companies call me 10 months ago. I asked them, "you want me to sell your product to my customers? That violates every ISO agreement i ever signed."

They tried to convince me it was a way to make more money off my book of business.

I was like, WTF, do you have any morals?

same here. one even told me to open another corporation under my mother or something stupid like that.

I wonder if any other lenders will now sue these guys

[Karen37a]

same here. one even told me to open another corporation under my mother or something stupid like that.

I wonder if any other lenders will now sue these guys

What about that Amy person who was calling everyone including me like a nut.

One of them in Florida told me "if I knew what was good for me" id partner with them.

I don't know if they realize that we consider ourselves the Funders partners on our book of business and we get renewal commission.

[WestCoastFunding]

yes any info would be great. Our current target is settle my cash advance but we have 4-5 others that we got info on that we are going after if we have enough evidence.

Settle My Cash Advance spent a year flooding my junk mail. Worse were the emails from “National Credit Partners” who has a guy using WBLs name to build credibility (said he used to be VP of Northern Cali for WBL) before getting into debt restructuring.

[fundingsmbs]

what is worse, a broker taking a deal right after you fund it and pay them and stacking them 2-3 deep causing a default, or, a broker sending them to a debt relief co after they fund a merchant and collect a commission. Both seem to be bad practices.

[Karen37a]

Settle My Cash Advance spent a year flooding my junk mail. Worse were the emails from “National Credit Partners” who has a guy using WBLs name to build credibility (said he used to be VP of Northern Cali for WBL) before getting into debt restructuring.

They could have worked for someone before. I cherry picked files out of a box of debt relief files once from some random person walking into my office. It was distuurbing.

[WestCoastFunding]

Step 1: setup a fake website and email of a debt settlement company
Step 2: send out emails to all ISOs offering your debt settlement service
Step 3: any ISO that responds gets their ISO terminated

[Karen37a]

Step 1: setup a fake website and email of a debt settlement company
Step 2: send out emails to all ISOs offering your debt settlement service
Step 3: any ISO that responds gets their ISO terminated

That would be crafty ( now you told everyone and everyone will use those Bangladesh call center porn names)

[Andy]

same here. one even told me to open another corporation under my mother or something stupid like that.

I wonder if any other lenders will now sue these guys

Yes. LCF has also sued settle my cash advance recently, and is also going after other debt settlement firms. You will be seeing a lot more lawsuits against these guys in the coming months.

https://iapps.courts.state.ny.us/nys..._PLUS_No/Y3A==

[Karen37a]

Yes. LCF has also sued settle my cash advance recently, and is also going after other debt settlement firms. You will be seeing a lot more lawsuits against these guys in the coming months.

https://iapps.courts.state.ny.us/nys..._PLUS_No/Y3A==

Some of these companies have been tacked before. Sued etc.

If they keep going they will wind up in jail with mail and wire fraud charges. They will raid them. Everyone including the secretary who answers the phone "legal dept" will get charged and they seize their assets..all, personal...and a judgement that follows you to tohe grave, you cant go bankrupt from it

[Karen37a]

That is the power of "regulation"....they get arrested. And why they cant get on the back end of some loan brokers calls, they did loan modifications and forensic audits to block the modifications for the investors and know all the laws.

[patrickw]

That would be crafty ( now you told everyone and everyone will use those Bangladesh call center porn names)

lmfaooo :O

[Karen37a]

I read that some Debt relief companies gave a list of the brokers/funders who participated.

ack

They always tell on you

[Big Mack]

what is worse, a broker taking a deal right after you fund it and pay them and stacking them 2-3 deep causing a default, or, a broker sending them to a debt relief co after they fund a merchant and collect a commission. Both seem to be bad practices.

You forgot about the reverse consolidation in between stacking & debt settlement.

[Ktolbert85]

You forgot about the reverse consolidation in between stacking & debt settlement.

Maybe I do not understand your comment, but you have a problem with reverse consolidations? Reverse consolidation are designed to help get them unstacked and not default or have to go the debt settlement route. When it is responsibly underwritten it is a great program. However, there are some companies that will give crazy terms and include positions that do not make sense for the merchant. On top of that they will fund them an additional advance which defeats the whole purpose of the reverse. Which leads me back to my point, it is a good program if responsibly underwritten.

[Karen37a]

You forgot about the reverse consolidation in between stacking & debt settlement.

I know what you are talking about...but reverse, insert default loan here, debt consolidation,( or here) sukahara with a half twist dismount debt relief