March 30, 2020

OUTSTANDING PUBLIC INTEREST REPORTING: From The Daily Caller, reports of the corporate version of the “payday loan” racket doing its best to squeeze every last dime from small businesses:

“There’s lots of talk about helping small businesses. But in the last few days, lawyers running lawsuit mills are suing small businesses to extract cash,” Federal Trade Commission member Rohit Chopra tweeted on March 19 about the MCA industry. “The lawyers work for lenders that offer pricey payday-style loans using sketchy contract terms to restaurants and businesses.”

The story details how companies skirt usury laws through the sale of a portion of a business’s future income at a discount. Typical MCA agreements require businesses to make payments every business day of a set dollar amount until the agreement is settled.

**Disclosure: I act as outside Newsroom Counsel to The Daily Caller and occasionally contribute media-related commentary to the site. 

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