FTC Settles With Merchant Cash Advance Company

  • The FTC has reached a settlement with merchant cash advance company RCG Advances, LLC and its owner, Robert L. Giardina (collectively, “RCG”) to resolve allegations that RCG deceived and threatened small businesses and their owners to whom it provided funds, in violation of the FTC Act and the Gramm-Leach-Bliley Act.
  • According to the FTC, RCG misled consumers about the terms of the cash advances it provided, including personal guarantees; compels consumers and businesses to sign admissions to judgment in the event of alleged breaches; provided less funding than promised; and threatened consumers and businesses with violence and false accusations of criminal conduct.
  • Under the stipulated order, RBG is permanently banned from the merchant cash advance industry, must pay a $1.5 million fine to the FTC and an additional $1.2 million for consumer refunds. , and must cancel judgments and liens against former clients, among other things.
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