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RAM Capital Funding and Owner Tzvi Reich Banned from Merchant Cash Advance Industry
Settlement with FTC Includes Fine, Ban from Industry
The Federal Trade Commission (FTC) announced a settlement today that bans a merchant cash advance company and its owner from the industry as a result of deceptive and illegal practices.
As a result of the settlement, RAM Capital Funding, LLC and its owner Tzvi Reich, will be permanently banned from the merchant cash advance and debt collection industries, and required to pay $675,000 to settle charges that they used deceptive and illegal means to seize assets from small businesses, non-profits, and religious organizations.
“Today’s order makes clear that preying on small businesses will come with a heavy price,” said Samuel Levine, the Director of the FTC’s Bureau of Consumer Protection. “These defendants have been banned from the merchant cash advance business, and we intend to hold their co-defendants similarly accountable.”
Merchant cash advances are a type of alternative small business financing. Generally speaking, merchant cash advance companies provide funds to businesses in exchange for a percentage of the businesses’ revenue. Typically, a merchant cash advance company will make daily withdrawals from the business’s bank account until the obligation has been met.
