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New York Attorney General Letitia James announced on Wednesday that her office has secured a $1.065 billion judgment against Yellowstone Capital, a cash advance provider accused of engaging in predatory lending practices. This judgment is part of a settlement that includes over $500 million in debt relief for small businesses.

Previously known as Yellowstone, the company, now operating as Delta Bridge Funding or Cloudfund, was taken to court last March for misleading merchants by promising to purchase specified percentages of their future revenue and offering refunds on loan payments during slow business periods.

Instead of delivering on these promises, Yellowstone withdrew fixed amounts from the merchants' bank accounts over 60 to 90 business days, resulting in exorbitant effective interest rates that sometimes soared to as high as 820%. In New York, interest rates exceeding 16% are classified as usurious.

As part of the settlement, $534.5 million of the small businesses' debts have been canceled, benefitting over 18,000 businesses nationally, with approximately $36 million in debt relief approved for more than 1,100 businesses in New York. Yellowstone and its executives have paid a total of $16.1 million toward the settlement, with $514.3 million of the outstanding debt still to be addressed.

Attorney General James stressed that Yellowstone and its executives exploited vulnerable small businesses, leading to closures and job losses, stating, "Their predatory loans forced successful companies to close and put New Yorkers out of work."

While Yellowstone expressed satisfaction with the settlement, there has been no immediate response from the legal representatives of Delta, Cloudfund, and the co-founder, David Glass.

In addition, it was reported in December 2023 that Yellowstone had agreed to pay $5.6 million and forgive $21.8 million in debt in a separate settlement with New Jersey's Attorney General for deceptive practices.