- The Federal Trade Commission (“FTC”) sued merchant cash advance provider Yellowstone Capital and related entities and individuals (collectively, “Yellowstone Capital”) over allegations that Yellowstone Capital unlawfully withdrew millions of dollars in excess payments from customers’ accounts and used deceptive marketing practices in violation of the FTC Act.
- The complaint alleges that Yellowstone Capital regularly made unauthorized withdrawals totaling millions of dollars from customers’ bank accounts after the businesses had repaid the full amounts owed to Yellowstone Capital, often refunding money only after receiving complaints and taking weeks or months to issue refunds. The complaint also alleges that Yellowstone Capital used misleading marketing and advertising practices, including requiring business owners to personally guarantee their businesses’ repayments after initially promising that no collateral would be required.
- The complaint seeks injunctive relief, rescission or reformation of contracts, restitution, refunds, disgorgement, and attorneys’ costs.