The Yellowstone Ruling: Is it Egregious Debt Relief, or Communism?
Need a Funder or Vendor? START HERE

Results 1 to 8 of 8
  1. #1
    Senior Member Reputation points: 27285
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    636

    The Yellowstone Ruling: Is it Egregious Debt Relief, or Communism?

    * The Case for Debt Relief

    A 1.065 billion judgment against YS, with half used to cancel outstanding debt. The other half, ($514 million) is a judgment to be paid out by Yellowstone. Paid out to who?


    In a typical DEBT RELIEF agreement, broker makes 2 to 5 points on the debt amount.

    NY is charging almost 100 points on the debt amount, which is ironic, being that they just speared Yellowstone to the wall for allegedly doing just that.





    * The Case for Communism

    In Communism, you frequently see the redistribution of wealth from the top of the people, to the bottom of the people, with the government getting half of all the profits.

    Does this sound familiar in this case? All the merchants got their money back, all gleaned from YS. And NY will be clearing the other half of the profits.



    Did we just witness communism, debt relief, or a government helping out its citizens? Curious to hear viewpoints.





    Wholesale pricing for Merchants Seeking Capital
    www.UccRadar.com

  2. #2
    Senior Member Reputation points: 19691
    Join Date
    May 2014
    Location
    California
    Posts
    377

    YS ripped off customers and ISO's non-stop. They would buy an ambulance here and there for charity trying to absolve themselves. The entire group is a stain on the bottom of your shoe.

    Nobody should be defending them at all. They were caught red-handed.

  3. #3
    Senior Member Reputation points: 27285
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    636

    Quote Originally Posted by Shorebird View Post
    YS ripped off customers and ISO's non-stop. They would buy an ambulance here and there for charity trying to absolve themselves. The entire group is a stain on the bottom of your shoe.

    Nobody should be defending them at all. They were caught red-handed.



    Definitely not attacking or defending. Just looking at it from a broader lens. The accusations brought against them about "high interest loans", if you take their definition the way they framed it, can technically be levied against most of the industry.

    If you replace the name Yellowstone with another MCA provider and re-read the indictment, most (not all) would still be written the same way.



    So I'm asking, if they can make this case for YS, could this be a precedent that they might use again in the future.





    Merchants Seeking Capital, Guaranteed Offers
    www.UccRadar.com
    Last edited by Franklin; 01-24-2025 at 03:43 PM.

  4. #4
    Senior Member Reputation points: 24397
    Join Date
    Nov 2013
    Posts
    628

    Quote Originally Posted by Franklin View Post
    Definitely not attacking or defending. Just looking at it from a broader lens. The accusations brought against them about "high interest loans", if you take their definition the way they framed it, can technically be levied against most of the industry.

    If you replace the name Yellowstone with another MCA provider and re-read the indictment, most (not all) would still be written the same way.



    So I'm asking, if they can make this case for YS, could this be a precedent that they might use again in the future.





    Merchants Seeking Capital, Guaranteed Offers
    www.UccRadar.com
    This is a warning to the industry, especially the John Brauns and Isaac Sterns of MCA.

    Clean up or they will come after you too. If you stay in compliance you wont have issues.

  5. #5
    Senior Member Reputation points: 19691
    Join Date
    May 2014
    Location
    California
    Posts
    377

    Yeah, I don't understand why the poster is defending YS.

  6. #6
    Senior Member Reputation points: 27285
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    636

    Quote Originally Posted by Shorebird View Post
    Yeah, I don't understand why the poster is defending YS.


    I'm not defending YS, I'm taking a wide angle view at how these government actions affect the whole industry. Most of the established Isos in our space have utilized YS at one time or another, as they were known as a C-D paper lender that paid some of the best commissions and paid in a timely manner.

    Of course YS had business practices that were not acceptable.... what I'm saying is that there are many other lenders with similar practices, including some of the A paper lenders.

    The authorities were comparing YS to traditional financing companies, not comparing YS to other MCA companies. Using those metrics, if an authoritative body wanted to, they can theoretically create a problem for most MCA companies.






    www.UccRadar.com

  7. #7
    Senior Member Reputation points: 25297
    Join Date
    Aug 2024
    Posts
    330

    You all made $ working with them. Stop talking about it. I'm sure uccradar was selling them leads at some point based on your tib.

  8. #8
    Senior Member Reputation points: 27285
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    636

    Quote Originally Posted by Johndough24 View Post
    You all made $ working with them. Stop talking about it. I'm sure uccradar was selling them leads at some point based on your tib.


    That was one of the points I made as well, and one of the legs I was alluding to. Many funder are similar to YS, (not specifically from an "illegal" standpoint) and many shops profited for a while.

    They were spending 6 figures a month on marketing, much of it online, and when some of the funders backed by public money entered the fray and started driving up prices, they decided to move to a primarily ISO driven model. I recruited their director of marketing after he left YS.






    www.UccRadar.com

Similar Threads

  1. FTC rules on Debt Relief Services
    By Karen37a in forum Merchant Cash Advance
    Replies: 3
    Last Post: 10-01-2017, 09:28 AM
  2. Business Debt Relief Companies - Need Advice From The Forum
    By Cambridge in forum Financial Services
    Replies: 9
    Last Post: 09-21-2017, 12:30 PM
  3. MCA Debt Relief
    By Jstarr in forum Deal Bin
    Replies: 4
    Last Post: 07-13-2017, 01:52 PM
  4. DEBT Relief
    By Lmonus in forum Merchant Cash Advance
    Replies: 0
    Last Post: 01-26-2017, 03:39 PM
  5. Creditors Relief...Debt Consolidation...
    By Collector in forum Merchant Cash Advance
    Replies: 2
    Last Post: 09-25-2015, 03:11 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

AFC on new CFPB nominee
Cambridge Wilkinson expands
Cloudsquare integrates with CAN


DIRECTORY