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 https://yourloansllc.com/title-loans-wy/ 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. (more…)

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