Blog Posts Tagged with Credit and Loans

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Back to business #3: Looking for small business financing?

It’s exciting to see so many “open” signs appearing in store windows across the country. But some companies making the transition to an in-person workplace may find themselves in a short-term cash flow crunch. Even before the pandemic, the FTC raised concerns about deceptive practices related to small business financing. With many companies working to regain their footing, the FTC has tips on protecting yourself when looking for financing.

FTC says Yellowstone wasn’t faithful to claims it made to small businesses

Yellowstone – the majestic national park – is known for Old Faithful, roaming bison, and vistas to take your breath away. According to a 2020 FTC complaint, Yellowstone – the merchant cash advance provider – was unfaithful to its promises, buffaloed small business owners, and made illegal withdrawals that took their cash away. A settlement will return more than $9.8 million to customers and includes injunctive provisions to change how Yellowstone does business.

How a “funding” company and business coaching outfits joined forces to deceive consumers

For people who were looking to run their own businesses, the lesson of the FTC’s proposed $2.1 million proposed settlement with Las Vegas-based Seed Consulting, LLC, is that neither their future nor their fortune was in the cards – credit cards, that is. The defendants’ modus operandi was to file falsified credit card applications in consumers’ names – a service for which they charged a hefty fee – so that consumers could use those lines of credit to pay for “business seminars” offered by third-party outfits with whom Seed Consulting was in cahoots.

Business owners: Latest COVID scam is directed at you

Fraudsters have concocted a new COVID-related scam and this time they have businesses in their sights. According to reports, business owners are getting emails that appear to be about government-sponsored loan programs. But they’re really phishing messages trying to trick people into turning over personal information. The FTC has tips on how to spot the latest scam and how to defend your company’s good credit – and your good name – against other coronavirus cons targeting businesses.

Fake government affiliation: A name game no one should play

What’s in a name? According to an FTC lawsuit filed in April, if you’re an outfit that uses the name “SBA Loan Program” – and you falsely claim to be an approved lender for the Small Business Administration’s coronavirus relief lending program – what’s in your name is deception. Under the terms of a settlement, that shady tactic stops right here, right now.

Protecting small businesses seeking financing during the pandemic

Small businesses are a critical part of the U.S. economy, providing opportunity and employment to consumers across the country. Unfortunately, the current health crisis has brought financial strain to small businesses and their ability to secure the financing they need to survive. So now more than ever, struggling businesses and their owners need protection from deceptive and unfair practices. And the FTC is working swiftly to provide it.

FTC-SBA warning letters caution against misleading loan program claims

In the face of COVID-19, many small businesses are looking for help from the CARES Act’s Paycheck Protection Program. They may apply for PPP loans through Small Business Administration-authorized lenders and others the SBA has determined to be eligible. But there are concerns that some companies have falsely claimed an affiliation with the SBA or approved PPP lenders, or have represented untruthfully that people can get PPP or other SBA loans by applying on their sites.

Looking for small business financing? Read this first.

Many small businesses, medical offices, non-profits, and religious organizations turned to a New York company called Richmond Capital for financing, but according to a lawsuit filed by the FTC, they got less – and way more – than they bargained for. The just-filed law enforcement action against a network of related companies and individuals is the latest step in the FTC’s ongoing effort against questionable financing practices that target small businesses.

FTC says Bronx Honda discriminated against African-American and Hispanic consumers

The FTC’s complaint against Bronx Honda alleges the company jacked up what consumers had to pay by fabricating fees, inflating charges, and sneaking in stealth add-ons. The lawsuit also alleges the defendants discriminated against African-American and Hispanic consumers by charging them higher financing markups and fees, in violation of the Equal Credit Opportunity Act and Reg B.

Big concerns about small business loan pitches

Many small businesses are looking for a financial life preserver to help them stay afloat until the COVID-19 wave subsides. But joint warning letters just sent by FTC staff and the Small Business Administration raise concerns that some companies – including lead generators – are making questionable claims about their affiliation with SBA-administered programs designed to offer emergency relief to struggling businesses.

When the price is wrong: $175 million FTC settlement with Progressive Leasing shows why cost clarity is key

Some things have changed in the rent-to-own business, but a $175 million proposed settlement with Progressive Leasing reminds companies that bedrock consumer protection principles apply, especially the fundamental proposition that deceiving people about cost strikes at the heart of the FTC Act. Not in the rent-to-own industry? Not so fast. The case offers compliance pointers for your company, too.

First FTC coronavirus lawsuit alleges company lured consumers with false SBA connection

The COVID-19 crisis has many small businesses on the ropes, so it’s unfortunate we have to warn them about another threat. According to a lawsuit just filed by the FTC, a Rhode Island company that goes by the name “SBA Loan Program” has been soliciting applications from small businesses, but has no affiliation with the U.S. Small Business Administration and the loan programs that agency is currently running.

Small business financing: Considerations for borrowers and lenders during the coronavirus crisis

For small businesses, there’s never been a time when “business as usual” has been so unusual. With many companies facing coronavirus-related challenges, the FTC has tips for business owners – and for those offering small business financing – about navigating today’s uncharted financial waters.

Where small businesses can turn for accurate information about financial relief

As a business owner, you’ve seen the headlines about financial relief that may be available to some companies through the Small Business Administration (SBA). But you’ve also heard about scammers who extract a grain of truth from the news and distort it in an effort to cheat small businesses. Now more than ever it’s critical for small business owners to go straight to the source for accurate information about what’s happening at the SBA. And that source, of course, is the Small Business Administration’s dedicated page, sba.gov/coronavirus.

CROA case shows why piggybacking isn’t the answer for consumers shouldering bad credit

The practice is called piggybacking, but it’s not child’s play. It’s where a person with iffy credit pays a credit repair company to be listed as an authorized user on the account of someone with good credit – even though they don’t actually have access. The idea is that the person with bad credit can inflate their own credit score and get the money-saving benefits of better credit by “piggybacking” on the credit of a stranger. That’s how a Denver-based business pitched its services to cash-strapped consumers.

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