Attorney General takes on predatory lenders in $1.4 billion lawsuit 

Attorney General Letitia James has initiated a lawsuit against an extensive network of more than 40 lending companies, including notable entities like Yellowstone Capital and Delta Bridge Funding, accusing them of orchestrating a massive predatory lending operation. 

The lawsuit alleges these entities exploited small businesses across New York through deceitful merchant cash advances that masqueraded as high-interest loans, resulting in the collection of billions in illegal fees and interest.

The goal is to reclaim at least $1.4 billion in undue charges from these predatory lenders, alongside demanding an injunction to cease their exploitative practices. This move comes after settlements were reached with five individuals tied to the Yellowstone operation, totaling $3.37 million in restitution for affected businesses and imposing a permanent ban from the industry.

“Small businesses are the foundation of our economy, and they face severe challenges without also having predatory lenders taking advantage of them,” James said. “Yellowstone Capital, Delta Bridge and the other companies pretended to offer a helping hand, but instead provided only illegal, ultra-high-interest loans. Numerous small business owners struggled because of the outrageous loans issued by Yellowstone Capital and other predatory lenders.”