AG James Seeks to End Abusive, prohibited Lending Practices andBring Relief to Merchants in nyc and Nationwide
Richmond organizations Issued Fraudulent, Sky-High Interest Loans to small enterprises, with Annual Interest Rates when you look at the Hundreds and large number of percentage, One Nearing an interest that is annual of 4,000 per cent
NEW YORK вЂ“ New York Attorney General Letitia James today filed case wanting to stop three ny City-based organizations therefore the owners and supervisors of these businesses from continuing to cheat small enterprises in nyc and in the united states away from vast amounts every year by attempting to sell these business that is small вЂњmerchant cash advances,вЂќ or fraudulent, sky-high interest loans. In documents filed in ny County State Supreme Court, Attorney General James charges the 3 businesses вЂ” Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding (the Richmond businesses) вЂ” with illegally loaning cash to small businesses at astronomically-high interest levels, fraudulently asking undisclosed charges, debiting extra quantities from merchantsвЂ™ bank records, and getting judgments against merchants by filing false affidavits in brand New York State courts. Furthermore, Richmond Capital and Ram Capital are increasingly being faced with harassing and threatening merchants with physical physical physical violence and appropriate action, so that they can force them to cover the loans off. The lawsuit вЂ” filed after a 18-month-long investigation вЂ” alleges that the businesses have, since 2015, collected over $75 million on a lot more than 1,900 fraudulent, unlawful loans.
вЂњSmall companies are the backbone of y our economy, therefore it is unconscionable why these modern-day loan sharks not just preyed on hardworking business owners with fake loans, but threatened violence and kidnapping,вЂќ said Attorney General James.