N.J. Says Cash-Advance Pioneeer Deceived Borrowers
- Attorney general sues small-business lender in state court
- Yellowstone was offered tax credits to relocate to state
New Jersey Attorney General Gurbir Grewal
Photographer: Julio Cortez/AP Photo
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New Jersey sued Yellowstone Capital LLC, a pioneer in a form of unregulated lending known as merchant cash advance, accusing the firm of deceiving small businesses and offering loans on predatory terms.
Attorney General Gurbir Grewal filed the suit on Tuesday in state Superior Court in Hudson County. Jersey City, New Jersey-based Yellowstone, whose business practices were the subject of a Bloomberg News series in 2018, faces similar allegations in a lawsuit brought by the Federal Trade Commission in August.