New York's AG files $1.4B lawsuit against Yellowstone Capital, accusing it of predatory, 800% interest loans disguised as cash advances.
New York's Attorney General, Letitia James, has filed a $1.4 billion lawsuit against cash-advance pioneer Yellowstone Capital, accusing it of making illegal loans to small businesses with interest rates of up to 800% annually. Yellowstone is alleged to have disguised these loans as merchant cash advances, claiming the usual lending rules do not apply. The lawsuit claims the company's practices were predatory and exploitative, causing serious financial harm to the small businesses that fell victim to them.
March 05, 2024
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