Sued by World Global Capital: 7 Things That Happen Next

World Global Capital LLC d/b/a YES Funding is one of the Yellowstone defendants. In 2025 there was a consent order/judgment in New York County Supreme Court in which these companies (including World Global Capital) agreed to vacate unsatisfied judgments and dismiss all pending collection/enforcement lawsuits. It provides that defendants are permanently barred from cash advance business. Whether you’ll get your relief automatically or not is unclear.

1. Check the settlement first

This is good news in that the settlement may cancel collection of debts on $534,552,724 in merchant balances. However, it may not have covered your balance.

And the deal also releases some liens on business property. It is worth checking court records to see if a case against you was in fact discontinued as required, and you should not simply assume that it was if your case is on the books.

2. Watch the deadlines and New Jersey

Reportedly, the deadline to put in a claim to have the judgment voided was January 9, 2026. Under the New York settlement, that window appears to be closed. Then there is New Jersey, which had its own $27.375 million settlement. There, the customers got their balances wiped out and any pending collection lawsuits against them must be dismissed.

3. The answer clock starts

If you are properly served with a lawsuit anyway, there is a deadline to answer it. In New York, you have 20 days from the time the lawsuit papers are handed to you if you were served inside New York, and 30 days otherwise. Negotiations do not put your answer on hold. The suit usually does name the business, and also anyone who signed a personal guarantee, as a defendant. What each owes depends on what is written in the guarantee.

Keep good records of when and how the suit papers were handed to you. It affects how much time you have to answer the complaint. Have an attorney check the deadline, whether it was done legally and whether you have any valid defenses.

4. Silence becomes a judgment

If you get sued in state court for a set amount and do not answer the complaint, the court clerk may enter a default judgment for the amount of the claim, plus court costs, plus interest. Typically, you may then have up to a year after you are notified to vacate the default by motion.

Depending on the court where the case went ahead without you, and on the reason you missed your answer date, it can be hard to get rid of a default judgment. Go to a lawyer as soon as the judgment shows up.

5. The confession of judgment question

Beware the confession of judgment. It works by a prior agreement by which you consent to losing a lawsuit without it being filed. New York State, in CPLR 3218, blocks filings against out-of-state debtors. Since August 30, 2019 the law requires confessions to be filed in the debtor’s home county.

Some states place restrictions or impose outright bans on using confessions of judgment. Before responding to any debt collector about one, see whether you signed it, and whether your creditor has filed it yet.

6. Your bank can be frozen

Bank balances can be tied up for up to a year if the judgment creditor serves the bank with a restraining notice. New York state imposes judgment interest at 9% a year, and it grows over time.

Separately, a funder can give UCC notice to the customer or card processor. Then the recipient may hold the money. The questions become what caused it and how to challenge it.

7. What you should do now

First, save copies of everything, and keep a note by each document about how it arrived and who sent it. Second, examine the agreements and personal guarantees carefully, and look to see how much is still owed under each document, and when it was due. Third, if there were charges taken off the bank, match the transaction reports against the contract. Before negotiating with your funder, list the payments by day and amount, and check whether there is a reconciliation clause allowing your payment to reflect actual sales. Don’t change accounts until your lawyer sees your file and says it’s all right to do that. In the heat of the moment, people sign papers without reading, some with threatening collectors in front of them. Don’t sign without the advice of an attorney.

If you believe a withdrawal was unauthorized, save the details. Call your bank right away. And tell customers only information that you know is true.

If you cannot afford your debts, you might be able to slow your payments, settle them, or take out a new loan to cover them. If not, you might need to have a bankruptcy lawyer look at your file. If there’s a personal guarantee, the entity bankruptcy filing may not do anything for you.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.