151. Cash-Advance Pioneer Yellowstone Sued by New York for $1.4 Billion.
- Author
-
Faux, Zeke and Mider, Zachary R.
- Subjects
LOANS ,INSIDER trading in securities ,FINANCIAL crises ,SMALL business loans ,PREDATORY lending ,NOT guilty pleas - Abstract
Yellowstone Capital, a pioneer in high-risk lending known as merchant cash advance, has been sued by New York's attorney general for $1.4 billion. The lawsuit alleges that Yellowstone made illegal loans to small businesses, lending money at rates that exceeded usury limits. The company claimed that these rules did not apply because the transactions were considered "advances" on future revenue rather than loans. New York is also suing other companies and individuals associated with Yellowstone, seeking the recovery of interest and fees, as well as a lifetime ban from the industry for one of the founders. Yellowstone has previously faced settlements and lawsuits related to deceptive practices. [Extracted from the article]
- Published
- 2024