Cash-Advance Pioneer Yellowstone Accused of Deception by FTC
- Agency files lawsuit in federal court alleging lending abuses
- Yellowstone provides cash advances to small businesses
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Yellowstone Capital LLC, a pioneer in a form of unregulated lending known as merchant cash advance, was accused by federal regulators of deceiving small-business customers, hitting them with surprise fees and overcollecting on debts.
The Federal Trade Commission filed a lawsuit against Yellowstone in federal court in Manhattan on Monday claiming the firm engaged in deceptive and unfair business practices and asking a judge to order restitution for customers. The suit also names Chief Executive Officer Yitzhak “Isaac” Stern and President Jeffrey Reece.