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New York Attorney General Sues Cash-Advance Operation for Predatory Lending

A New York-based cash-advance operation is facing serious allegations of exploiting struggling small businesses across the country by issuing fraudulent, “predatory” loans at exorbitant interest rates reaching as high as 820%. The lawsuit, filed by New York Attorney General Letitia James, claims that Yellowstone Capital and its network of related companies continued their operations under a new name, Delta Bridge, after purportedly shutting down in 2021 amidst ongoing investigations.

The deceptive practices of Yellowstone Capital and Delta Bridge resulted in small businesses, like the longstanding Manhattan eatery City Bakery, being burdened with unsustainable daily payments exceeding $2,000, ultimately leading to the closure of the establishment. Attorney General James emphasized the detrimental impact of such illegal, high-interest loans on the already vulnerable small business sector, calling for accountability and justice.

How AI legalese decoder Can Help

AI legalese decoder can assist in deciphering the complex legal language and terms used in the lawsuit filed by Attorney General Letitia James against Yellowstone Capital and Delta Bridge. By breaking down the intricate details and allegations in a more understandable format, AI legalese decoder can empower small business owners and individuals impacted by predatory lending practices to better comprehend their rights and seek appropriate recourse.

The lawsuit also singles out key individuals involved in negotiating and servicing these illicit loans, including David Glass, a co-founder of Yellowstone Capital with a history of insider trading charges. Attorney General James is seeking a court order to halt the operations of Yellowstone, Delta Bridge, and their affiliates, along with a permanent industry ban for Glass.

Seeking restitution for impacted small businesses, Attorney General James is pursuing a minimum of $1.4 billion in damages. Yellowstone Capital’s previous legal troubles include settlements with federal regulators and the state of New Jersey, highlighting a pattern of deceptive practices and financial harm inflicted on unsuspecting entrepreneurs.

Prior to filing the New York lawsuit, Attorney General James secured settlements with individuals involved in the Yellowstone scheme, resulting in millions of dollars in compensation for affected businesses. The legal action against Yellowstone Capital and Delta Bridge underscores the importance of holding predatory lenders accountable and protecting the interests of small business owners nationwide.

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