Barrington Financial - Jude Overo Brokered a really bad deal! New York, New York
I was referred to Jude Overo at Barrington Capital for financing for our small business. He seemed expensive at first, but I thought it could work.
He connected me with a lender that took us to the cleaners. Jude rolled over at every request from the lender, he never really brokered for us. He and the lender recieved a $2,500 commission and additioinal another broker was brought in and also paid $2,500.
The deal from start to finish was a chaotic mess. The deal ended up being horrible expense. I had to pay the attorney for the lender. I was told this would be about $1,500 - ended up over $7,500.
Our first title settlement was canceled because the title company had too many questions about the lender. It took another month to arrange a second closing. It ended up that both our business and home were tied up and the lender kept $3,600 in escrow.
I could go on, but the point is never use this company. It was a horrible experience and extremely expensive. This is a rip off company.
I mentioned to Jude I was going to write a complaint and he immediately responded with all kind of things he would say against me. So, be prepared.
Dan C
1 Updates & Rebuttals
Jude
New York,United States
Dan Creed Heritage Montessori School and his slanderous claim
#2REBUTTAL Owner of company
Thu, June 14, 2018
In response to Dan's false, libel, and slanderous statements, I want to chronicle my experience with him. I was approached by Dan who was struggling to pay off these expensive merchant cash advances. Dan was paying over 200% APR on these very expensive loans and came to me because he had few alternatives. After six long weeks of difficult negotiation with the hard-money lender (as I advocated for Dan and asked the lender to reconsider who finally relented and gave Dan an approval when it was initially declined), I managed to secure a modest loan with terms that allowed him to pay off his merchant cash advances and put some money in the business. The terms although higher than a traditional bank loan were 5-6 times less than the merchant cash advance loans he paid for. Despite the difficulty of this transaction, I felt a common bond and friendship as Dan came across genuine as he was grateful for all the hard work I did. He wrote a testimonial on Sept 4 2017 (See below) and even put together a video testimonial (for any party disputing the veracity of my experience with him).
Jude, It rained all day today, so I couldn't do a video outside. I am sending this written testimony for now for you to use. "My wife and I have owned and operated a Montessori School in Big Lake, MN for the past 12 years. When enrollment fell in 2008 due to the recession, we became aware of cash advances available for small businesses. We tried getting loans through traditional banks, but banks don't typically lend to small businesses, even though your credit score is good and you have an excellent financial history. We soon become burnt out using cash advances because they are so expensive and frankly dangerous. The pressure of making daily payments was very stressful. We started seeking an equity loan from a lender, utilizing the equity in our school property. Eventually, we came in contact with Jude Overo and Barrington Financial. We were able to secure a large loan and will pay off current cash advances and never need to use them again. This loan is a monthly payment, extended over a longer period of time. This was right for us. I am grateful that Jude worked with us to find a lender and close the deal. It will provide the jump start for our business that we have needed. Thanks Jude"
During the loan process, Dan had hired an attorney that I specifically was firmly against and advised him to find another attorney with reasonable costs and professional decorum. His response was that he needed to move quickly and that he did not have the time nor additional money (since he paid a retainer). This turned out to be a costly mistake because this costs (hours billed) added up quickly and became an issue. Dan ended up hiring another attorney after his relationship with the first attorney became untenable which the lender worked with.
After the close of the loan, Dan was reflective of his experience and said he would never ever take a merchant cash advance. I told him to contact me if he ever ran into any financing challenges with business. This was the end of September.
I received a nervous call from Dan in March stating that he needed additional capital quickly. He asked if I and the broker that assisted him in the previous transaction in 2017 could give him several thousand dollars personally. I told him that I couldn't but I would try to put some capital from some of my investors. I then discovered that between Oct 2017 and Feb 2018, he had taken three merchant cash advances. This was the source of his financial dilemma and the actual reason why he reached out to me. Stunned that he would go back to doing something that horribly impacted his business especially after he personally gave me his word, I told him that I couldn't help him.
On May 8 2018, he asked me if I can write a statement in support of his small-court claim against the first attorney that I advised him not to hire. After careful consideration, I decided I would not be a party in that dispute and directed Dan to ask the lender as the dispute stemmed from the billing hours completed with the lender.
On May 14, 2014 Dan asked me to remove the video testimonial. Surprised at the request, I asked him what prompted that decision. His response rather acriminous and angry, blamed me and the lender for financial hardships. He cited that he had lost his small claims court against the attorney he hired and that the judge awarded the money. He then stated he would file a complaint with the BBB and disparage my professional name. I am confused and saddened that despite the many hours (with little compensation) that I worked on getting this individual, his family, and business capital, I am blamed when I helped him pay off several expensive merchant cash advances (over 200% APR), I am blamed when he hired an attorney I advised against, I am blamed for not helping him when he took three more merchant cash advances, I am blamed because I did not support his small-court claim case.
I told Dan on my last email that despite his slanderous and false statements, that I wished him well and I hope he can get his business finances sorted. I can't imagine how damaging those merchant cash advances are to his business. Hopefully, he will stop taking those expensive MCAs and get his business back on track. Sadly, Dan is a reminder that sometimes no good deed goes unpunished...I helped him last summer and in return, he felt vindicated to disparage me.