North Carolina MCA Defense Lawyers Provide Business Debt Relief

Our phone number is 212-210-1851.Merchant cash advance (MCA) loans can provide quick capital for small businesses, but they also come with pitfalls like high rates and aggressive collections tactics. North Carolina business owners facing MCA debt issues should understand their legal defenses.

Challenging MCA Agreements

North Carolina defense lawyers can review MCA contracts for violations of state laws like usury rate caps or lender licensing requirements. If violations are found, the agreements may be void or unenforceable. This can eliminate some or even all owed balances.Specific defenses include:

• Unconscionability – Agreements with extremely high rates or unfair terms could be ruled unconscionable by courts.(https://www.reddit.com/r/smallbusiness/comments/xk8j4z/merchant_cash_advance_mca_horror_story/) This makes contracts unenforceable.
• Lender licensing – In North Carolina, lenders making commercial loans must have licenses. Unlicensed activity can invalidate loan agreements.(https://www.quora.com/Is-it-worth-the-risk-to-get-a-merchant-cash-advance)
• Usury caps – Though rare in commercial lending, violations of state usury caps could see balances reduced to legal rates.(https://www.findlaw.com/consumer/consumer-transactions/usury-laws-overview.html)

Good Faith Disputes

Even with legally binding MCA deals in place, North Carolina small business owners can challenge repayment efforts they believe to be excessive or abusive.Collectors must abide by state and federal consumer protection laws. Violations could qualify as unfair debt collection practices. With legal representation, businesses can put disputes on record and seek damages for issues like:

• Excessive collections calls – Federal law limits collectors to no more than 1 call per day.(https://www.ftc.gov/business-guidance/blog/2022/04/ftc-puts-700-million-stop-abusive-debt-collectors)
• Harassment – Threats, use of profanity, or causing distress could violate NC consumer protections.
• Misrepresentation – False statements about legal options or required payments break state and federal collections rules.(https://www.nolo.com/legal-encyclopedia/north-carolina-fair-debt-collection-practices-act.html)

Seeking Legal Representation

With an experienced North Carolina business attorney, small business owners can better understand their rights and options for disputing or reducing MCA debts. Key services lawyers provide include:

• Reviewing MCA agreements for potential violations
• Communicating with collectors regarding disputes or settlements
• Advising on consumer protections against harassment
• Assessing litigation options if violations are found

When facing aggressive MCA collectors, North Carolina small businesses shouldn’t have to go it alone. Get in touch at 212-210-1851 to discuss your situation with an attorney. With the right legal guidance, better outcomes could be within reach.