News & Analysis as of

Usury Merchant Cash Advance (MCA)

Latham & Watkins LLP

NY Attorney General Secures $1 Billion-Plus Judgment for Illegal Loans Misrepresented as Merchant Cash Advances

Latham & Watkins LLP on

On January 22, 2025, New York Attorney General (NYAG) Letitia James announced a judgment and settlement against cash advance provider Yellowstone Capital, its officers, and two dozen affiliates (Yellowstone) for more than $1...more

Hudson Cook, LLP

Yellowstone Capital Settles Lawsuit with New York Attorney General

Hudson Cook, LLP on

On January 16, 2025, Yellowstone Capital and other entities, along with Yellowstone officers Isaac Stern and Jeffrey Reece, settled claims by New York Attorney General Letitia James that Yellowstone and the other entities...more

Bradley Arant Boult Cummings LLP

Florida Court Affirms That Merchant Cash Advance Product Not Subject to Usury Statute

This month, a Florida appellate court held that a merchant cash advance (MCA) purchase and sale agreement was not a “disguised loan” and, therefore, was not subject to Florida’s criminal usury statute. MCA purchase and sale...more

Hudson Cook, LLP

COVID-19 and MCA Transactions: Emergency Circumstances Demand Servicing Changes

Hudson Cook, LLP on

COVID-19 and the related emergency has had a dramatic effect on small businesses. States have implemented "stay-at-home" orders or otherwise ordered the closure of non-essential businesses, resulting in the virtual...more

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