The merchant cash advance provider and its owners engaged in these deceitful business practices for years. Their actions violated the FTC Act, according to the regulator.
On Thursday, the FTC announced that Yellowstone Capital agreed to a $9.8 million settlement.
In addition to the monetary penalty, the merchant cash advance provider agreed to an order permanently prohibiting it from directly or indirectly participating in advertising, marketing, promoting, distributing, servicing, or offering any Financing Product or Service.
Yellowstone Capital also consented to the order permanently prohibiting it from making misrepresentations of any financing product or service. It also agreed to the prohibition against unfair billing practices.
Furthermore, the FTC required the defendants to clearly and conspicuously disclose any fees that will be paid by consumers for the financing, as well as the actual amount of money that a consumer will receive after the fees are charged.
The FTC voted 4-0 approving the stipulated final order against the defendants. order is subject to the final approval of the U.S. District Court for the Souther District of New York.
