MyPillow, Mike Lindell sue another cash advance lender
Zettelkasten Automated Post
MyPillow and its CEO Mike Lindell are once again suing a merchant cash advance company, this time accusing New York-based Merchant Capital of charging an overly high interest rate. The lawsuit, which is the third of its kind, alleges Merchant Capital deceived “cash-strapped” MyPillow into borrowing $2 million in July, with daily repayments of $41,400. It claimed the agreement had a series of “one-sided and unconscionable” provisions. Merchant Capital previously sued MyPillow for non-payment, maintaining the company ceased allowing daily debits from its bank account in October and still owes $678,000 of a total repayment cost of $2.9 million.
However, the financial straits of MyPillow appear to be deeper, with other lenders like Riverside Capital and Samson Horus alleging sizable outstanding loans. These companies have similarly taken legal action against MyPillow for non-payment, going as far as demanding Amazon to channel MyPillow’s revenue directly to them. This latest lawsuit from MyPillow is almost identical to two previous ones concerning a combined $2.1 million in loans with a total repayment cost of $3 million.
#MyPillow #MerchantCapital #LoanBattle #MikeLindell #FinancialCrises