MCA Defense Lawyers Can Help With Business Debt Settlement

As a business owner struggling with merchant cash advance (MCA) debt, you may feel overwhelmed and unsure where to turn. MCA loans can quickly spiral out of control, leaving you facing aggressive collection calls, threats of litigation, and damage to your business‘s finances. However, there are experienced attorneys who can help – MCA defense lawyers specialize in protecting business owners from predatory lending practices. With an MCA defense lawyer on your side, you can explore options like debt settlement to resolve your financial obligations without sacrificing your livelihood.

How MCA Loans Work And How They Can Go Wrong

Merchant cash advances provide businesses with quick access to capital by essentially selling a portion of their future sales. Here’s a brief overview of how MCA loans work:

• The MCA company gives the business owner an upfront lump sum payment in exchange for a percentage of their future credit card and debit card sales.
• The business owner then makes daily payments back to the MCA company based on the amount of sales from each day. Payments typically range from 10-20% of total daily sales.
• There is no set repayment period – the business keeps paying the MCA company daily until the full purchased amount plus fees and interest have been paid back.

This structure allows businesses to quickly access capital without some of the more stringent eligibility requirements of traditional bank loans. **However, MCA loans also come with sky-high interest rates often exceeding 100% APR when all costs are calculated.**Without careful planning, many business owners struggle to keep up with their daily payments. Aggressive and even illegal collection tactics then come into play:

• Threatening phone calls and emails demanding immediate payment

• Lawsuits and confessions of judgement filed without proper notice
• Accessing business bank accounts to seize funds
• Harassing customers by calling the business’s merchant processor or showing up at the physical location

Facing such ruthless tactics, many business owners feel powerless and without options. However there are defenses available, and an experienced MCA lawyer can help stop the harassment while negotiating a settlement.

MCA Defense Lawyers – Here’s How We Can Help

As MCA defense attorneys, our firm is here to protect your interests and rights as a business owner. We have extensive experience dealing with MCA companies and understand the predatory nature of their loans. Our attorneys will immediately get to work defending you from unlawful collections activities and developing a customized debt settlement strategy.

Stopping Harassment From MCA Companies

The first priority is putting an end to threatening communications and unauthorized debits from your accounts. We will send MCA companies formal notice that they must cease all direct contact with you and can only communicate through legal counsel. This stops the harassing phone calls and emails immediately.We will also notify your bank and merchant processor that the MCA company does not have authority to withdraw funds from your accounts. **This prevents them from unlawfully accessing your accounts without recourse.**Finally, if an MCA company has already initiated a lawsuit or confession of judgement, we can have it frozen so no further legal action can be taken against you. This eliminates the intense stress of dealing with mounting legal issues on your own.

Exploring Debt Settlement Options

Every business‘s financial situation is unique, so there is no one-size-fits-all approach to debt settlement. Our attorneys take time to thoroughly review your accounts payable/receivable, tax records, profit and loss statements, and business goals.From there, we can advise on all options available for negotiating with MCA companies, such as:

• Lump sum settlements – We negotiate to pay a smaller, lump sum amount to satisfy debt obligations. Often we can settle debts for 40-60% less than the full balance.

• Payment plans – If upfront resources are limited, we can secure extended payment plans at significantly reduced interest rates.
• Debt restructuring – We can work with your entire pool of creditors to restructure terms across all debts for more affordable payments.

• Bankruptcy – While always a last resort, we explore whether Chapter 7 or Chapter 11 bankruptcy may be the most viable path forward for your business.

No matter which strategy we employ, our firm handles all negotiations with MCA companies directly so you can focus on operating your business. We fight to deliver maximum savings off your balance owed while securing terms you can realistically manage.

Litigation To Invalidate Unlawful MCA Agreements

In some cases, MCA companies have failed to follow proper legal protocols required of lenders, or included unlawful terms in their agreements. Our attorneys can file litigation challenging these predatory contracts as void or unenforceable.Common issues with MCA agreements that could invalidate them include:

• No Truth in Lending Act (TILA) disclosures – Federal law requires lenders to disclose APR, payment terms, total costs, and other data.
• Rates exceeding state usury laws – State laws cap maximum allowable interest rates on loans, often at less than 30% APR.
• Unlawful access to accounts – MCA companies cannot access business accounts without proper notice and default judgements.
• Illegal daily repayment requirement – Some states prohibit requiring fixed daily repayments and instead mandate flexible payment options based on cash flow.

If we identify violations of federal and state lending laws, or a lack of legal standing to collect, we immediately open litigation to relieve you of repayment obligations altogether.