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MCA Defense Lawyers Provide Expert Assistance with Merchant Cash Advance Debt

Merchant cash advances (MCAs) can provide quick access to capital for small businesses. However, the terms of MCA agreements are often predatory, with exorbitant interest rates and aggressive collection tactics. If your business is struggling with MCA debt, specialized legal defense may be needed.

How MCAs Work and Why They Can Be Problematic

A merchant cash advance provides a business with a lump sum of capital in exchange for a percentage of future credit card sales. It is not technically a loan, so MCA companies can bypass state laws capping interest rates. However, the equivalent annualized interest rate often exceeds 100%.While MCAs provide fast money with minimal eligibility requirements, the payback can quickly become unmanageable. Many businesses see their payments consume 30-50% of credit card receipts. The arbitrarily high payments combined with personal guarantees, daily debits, and lack of regulation have caused financial ruin for countless small business owners.

Legal Defenses Against Abusive MCA Companies

If you feel trapped in a cycle of endless MCA debt, specialized legal counsel may help you take control of the situation. Attorneys with experience fighting MCA companies utilize arguments regarding:

  • Unconscionable contract terms – Courts can rule contract clauses as unfair or deceptive, essentially nullifying them. Key targets are personal guarantees, confessions of judgement, and unreasonable default interest rates.
  • Violations of state laws – MCA companies often run afoul of state lending and debt collection statutes. Usury laws, for example, protect against excessive interest rates.
  • RICO claims – The federal Racketeer Influenced and Corrupt Organizations (RICO) Act provides treble damages against entities engaged in patterns of illegal activity. Some courts have upheld RICO claims against systematically abusive MCA firms.
  • FDCPA violations – The federal Fair Debt Collection Practices Act prohibits harassing and deceptive collection tactics. Daily debiting of bank accounts often runs counter to FDCPA guidance.

An experienced attorney can analyze the specific details of your MCA agreement and debt situation to build a customized legal strategy. The goal is typically not to absolve the MCA obligation entirely but rather establish more reasonable and sustainable repayment terms.

Beware MCA Debt Defense Scams

In their desperation to escape MCA debt, some businesses fall victim to debt relief scams promising unrealistic outcomes. Warning signs of an MCA debt defense scam include:

  • Guarantees of loan forgiveness or cancelled debt – It is extremely rare for an MCA contract to be invalidated in its entirety. At best, certain objectionable clauses may be nullified. Reputable lawyers make no guarantees.
  • Requests for upfront payment – Lawyers typically work on contingency for debt settlement cases, collecting their fee only if/when debt relief is secured. Upfront payments should raise red flags.
  • Failure to provide documentation – You should receive thorough engagement letters, fee schedules, and representation agreements. Lack of paperwork suggests shady practices.
  • High-pressure sales tactics – Quality lawyers allow time for evaluation of options. Hard sell techniques are more indicative of scammers.
See also  Arizona MCA Defense Lawyers Business Debt Relief

What to Expect Working with a Reputable MCA Defense Firm

The path towards resolving MCA debt through legal channels begins with a comprehensive review of your situation by an experienced business debt relief attorney. You can expect:

Consultation and Case Analysis

  • Detailed discussion of your business finances and MCA agreements
  • Review of collection attempts and communication with MCA companies
  • Investigation into your state’s laws and relevant legal precedents
  • Formulation of a specific debt defense strategy with defined objectives

Pre-Trial Preparation

  • Attempts to negotiate directly with MCA firms, bolstered by threat of legal action
  • Filing of regulatory complaints alleging lending violations or unfair practices
  • Preparing documentation and evidence for litigation if talks fail

Litigation and Settlement Proceedings

  • Lawsuits filed against MCA companies alleging illegal or unethical conduct
  • Representation across mediation, arbitration, or court proceedings
  • Leveraging favorable rulings to secure reduced settlements
  • Ongoing support enforcing terms of any debt relief agreements

The path to freeing your business from the grip of predatory MCA debt is long but navigable. An attorney experienced fighting merchant cash advance companies can steer you towards the most viable options under the unique circumstances impacting your small business. Consider Delancey Street MCA Defense Lawyers for dedicated legal support.

Delancey Street MCA Defense Lawyers

Delancey Street maintains a passionate, highly-skilled team focused on protecting small businesses from abusive MCA arrangements. Our track record includes:

  • 5+ years securing MCA debt relief for small business clients
  • 300+ cases argued against predatory merchant cash advance firms
  • $20M+ in reduced payoffs and cancelled debt for exploited business owners

We level the playing field against unethical MCA companies by leveraging our courtroom capabilities and negotiating leverage. All cases are handled on a contingency basis – no upfront payments required.

See also  10 Questions to Ask Business Debt Settlement Companies

Why Small Businesses Choose Delancey Street for MCA Debt Defense

Trusted Track Record – Our long history with hundreds of cases provides credibility when pursuing settlements. MCA firms are well aware we fully intend to litigate if talks fail.Customized Strategies – We analyze the unique circumstances behind each MCA debt situation to target the specific violations and strongest legal arguments available.Relentless Execution – Our lawyers will work tirelessly across negotiations, complaints, hearings, mediation, arbitration, and court trials to secure the maximum debt reduction.Contingency Pricing – We only collect our fee if debt relief is obtained for your business. No upfront payments or retainers are required.Ongoing Support – Even after settlements are reached, we provide guidance on enforcing terms and monitoring for compliance. Your business will not be left alone to navigate the aftermath.Personal Service – Our small, focused firm provides the dedicated partner needed to battle MCA companies. Your business will not be passed off to random associates or paralegals.

Initial Steps to Addressing MCA Debt

If unfair MCA agreements are draining your business finances, the time to act is now. The first step is scheduling a free consultation with our legal team for in-depth analysis of your situation and strategic options.We will conduct an intensive review of your MCA contracts and business finances to gain clarity on:

  • The full scope of debts owed and collection efforts experienced
  • Applicable state laws and how the MCA agreements violate them
  • Viable legal arguments to deploy against the MCA companies
  • Realistic objectives given your circumstances and budget

Armed with facts and context, we can have an honest conversation about the best path forward, your chances of success, potential outcomes, and our reasonable fee structure.Schedule a Free Consultation or call us at (555) 555-5555 to take control of your MCA debt. The sooner you contact us, the faster we can start building your customized legal defense strategy.

FAQs on MCA Debt Relief and Defense

Small business owners struggling with merchant cash advance debt often have questions about the debt relief process and working with specialized legal counsel. Here are answers to some frequently asked questions:

How Much Does It Cost to Fight My MCA?

Our fees align directly with savings secured for your business. If we obtain no debt relief, you pay nothing. Typical contingency fee structures are:

  • 33% of gross debt reduction for settlements without litigation
  • 40% of gross debt reduction if a lawsuit is filed
  • Potential bonuses for exceptional outcomes
See also  Anchorage MCA Defense Lawyers Business Debt Relief

Since fees are only collected if we win savings for your business, our incentives are fully aligned with achieving maximum debt relief.

What If I Can No Longer Afford My MCA Payments?

The first step is requesting a modification of your agreement terms. If declined or the new terms remain unworkable, we can attempt negotiations backed by the threat of legal action. Stopping payments without consent, however, can trigger lawsuits and asset seizures. Let our lawyers handle all communication.

Can an MCA Take My Personal Assets?

If the MCA contract contains a personal guarantee, the risk extends to your personal assets. MCA companies can obtain court judgments to seize cars, homes, or investment accounts tied to a personal guarantee.

Are All Legal Tactics Fair Game Against Predatory MCAs?

While our mission is securing relief for exploited businesses, our attorneys operate strictly within ethical and legal constraints. We utilize good faith negotiations and arguments supported by state laws and precedent. The foundation for every strategy is sound documentation indicating unfair or illegal practices.

How Long Does the Legal Process Take to Resolve MCA Debt?

The timeline can vary dramatically based on factors like:

  • Willingness of the MCA firm to negotiate
  • Strength of evidence supporting your claims
  • State laws and legal backdrop
  • Willingness to take the case to trial

Most cases reach conclusion within 9 – 18 months, though complex litigation can extend longer. We will provide expectations upfront given the specifics of your situation.

About Delancey Street MCA Defense Lawyers

Delancey Street MCA Defense Lawyers was founded in 2019 by partners Adam Delancey and Jennifer Street. We are a dedicated team of attorneys, paralegals, and client support staff laser focused on protecting small businesses from the predatory practices of Merchant Cash Advance (MCA) companies.Our Mission: Provide small business owners with legal defense strategies to escape unfair MCA contracts and collection efforts. We level the playing field against unethical lenders exploiting America’s entrepreneurial sector.Our Vision: A future where the business financing industry is constrained by stronger regulations protecting small business owners from usurious interest rates, personal guarantees, and aggressive collections tactics.Our Values: Passion for small business rights, innovative legal strategies, white glove service, and community engagement.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

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