ABC Disposal Files Suit Against Creditor for Deceptive Practices
NEW BEDFORD - ABC Disposal Service is suing one of it's creditors.
Mike Camara, CEO of ABC, says the company borrowed money from Small Business Term Loans, Inc., which charged interest rates above 50%, well above the state's 20% interest cap.
Camara tells WBSM ABC turned to Term Loans after their own bank restricted their line of credit. "This company was out there. Their practices were extremely deceptive," says Camara. He adds he regrets using the company's service, but is taking action. "We can't turn the clocks back. All we can do is look forward. In the end, we're winning the battle."
Small Business Term Loans used a federally chartered bank to issue the first loan at a sky-high interest rate, avoiding the state cap.
ABC is seeking restitution, triple damages, and attorney fees from Small Business Term Loans.
ABC filed for bankruptcy last year, stating it owed 300 creditors $30 million. Camara says the business is on the upswing with legitimate investors lined up.