When businesses in Florida or elsewhere face accusations of deceptive practices, they are in a serious predicament. In some cases, the Federal Trade Commission could bring a lawsuit against a company if such practices are suspected. When companies have to defend against these allegations, understanding their legal options is necessary.
Yellowstone Capital LLC will certainly want to determine the best options for handling such claims after a lawsuit was recently filed against the company by the FTC. Yellowstone Capital offers merchant cash advances to small businesses that are unable to obtain loans through other means. These advances allow companies to obtain funds immediately, but they must pay back a higher amount. The FTC claims that the company used deceptive trade practices by advertising that personal guarantees and collateral were not needed for the loans, but the small business owners did have to sign a personal guarantee to repay the loans and offer collateral.
In addition to that claim, the FTC also alleges that Yellowstone continued withdrawing funds from companies even after their loans had been repaid. In some cases, thousands of dollars were purportedly taken from consumers’ accounts after full payment had already occurred. There was no comment from Yellowstone regarding the lawsuit provided in the report.
Allegations stemming from the FTC can have lasting repercussions for any business. This type of lawsuit can take a considerable amount of time and effort to defend against, so it is wise for parties facing such claims to gain reliable information about their options. Florida business owners who are facing similar predicaments may want to ensure that they have strong legal counsel to see them through such an ordeal.