A class action filed in the Superior Court of the State of California (San Diego) alleges that Business Financial Services, Inc., Business Cash Advance, Inc., Faton, Inc., and variety of other companies engaging in short-term lending, violate California's usury (high interest rate) law and the California Constitution. The defendants attempt to circumvent the legal caps on interest by referring to each loan as a "merchant cash advance." Named plaintiffs borrowed sums of money from defendants ranging from $5,000 to $40,000, and the loans carried effective interest rates of 70% and 90%. The plaintiffs are represented by James F. Clapp of Dostart Clapp & Coveney, LLP. For more information, please see Captain Bounce, Inc., et al. v. Business Financial Services, Inc., et al., 37-2011-00052329.