Feds crack straight down on lenders focusing on small enterprises with high-interest loans, abusive collection strategies

Feds crack straight down on lenders focusing on small enterprises with high-interest loans, abusive collection strategies

Vendor advance loan businesses making use of high-interest loans to ‘strong-arm’ small enterprises

Federal and state regulators are breaking down on loan providers focusing on smaller businesses with high-cost loans and abusive collection strategies, creating unease in a gently managed industry who has flourished because it place merchants in a vise.

One business, Par Funding, of Philadelphia, had been raided by the FBI on July 28, an FBI official confirmed, and has now been sued because of the Securities and Exchange Commission. Two others — RCG Advances and Yellowstone Capital, both of New York — have now been sued because of the Federal Trade Commission for presumably misrepresenting the regards to their financings. Continue reading