Indiana MCA Defense Lawyers Business Debt Relief


MCA Defense Lawyers Business Debt Settlement

Merchant cash advance (MCA) loans have become an increasingly popular way for small businesses to access quick financing. However, some MCA lenders engage in predatory practices that can leave business owners saddled with crushing debt. If you find yourself facing aggressive collections or even threats of criminal charges from an MCA lender, working with an experienced defense lawyer can help protect your rights.

How MCA Loans Work

A merchant cash advance functions similarly to a business cash advance or business loan, with some key differences:

  • The MCA provider purchases a percentage of the business’s future credit card sales or revenues in exchange for an upfront lump sum payment. This is technically considered a purchase, not a loan.
  • Payments are taken automatically as a fixed percentage of daily credit card sales. There is no fixed repayment schedule.
  • MCAs can be very high cost, with annualized rates often exceeding 100% APR when all fees are calculated.
  • Approval decisions are made quickly, often within 24-48 hours, as credit scores are generally not checked.

Why MCA Loans Can Be Risky

While MCAs provide fast access to capital for struggling businesses, they come with considerable risks:

  • High costs – In addition to very high equivalent interest rates, MCA contracts often contain numerous fees that drive up the true costs. Prepayment penalties may also apply.
  • Overreaching terms – Some MCA lenders include unfair or abusive provisions in their contracts, like requiring all disputes be handled in jurisdictions far from the business location.
  • Aggressive collections – Unlike banks, MCA lenders are generally not regulated. Some rely on harassing or intimidating business owners in order to collect debts.
  • Threats of criminal charges – The most predatory MCA lenders threaten business owners with unfounded criminal charges or loss of banking privileges in order to coerce repayment.

Working With a Defense Lawyer

If you are facing collections or threats from an MCA lender, contacting an attorney experienced in MCA defense should be your first step. An MCA lawyer can help by:

Investigating the MCA Agreement

  • Carefully reviewing the original MCA agreement to check for prohibited terms or provisions that may render the contract void or unenforceable.
  • Assessing whether proper protocols were followed in the origination process, like providing mandated disclosures.
  • Identifying any unfair or abusive clauses that violate state laws regarding interest rate caps or allowable fees.

Responding to Immediate Threats

  • If the MCA lender has threatened criminal charges or contacted your bank, your lawyer can intervene immediately by:
  • Sending a letter informing them such threats constitute harassment and violate federal and state debt collection laws.
  • Contacting local law enforcement and banking institutions if needed to dispute allegations.

Negotiating Debt Reduction

  • Based on their findings, your attorney may be able to negotiate:
  • Complete debt forgiveness, if major deficiencies identified in the origination process or contract terms.
  • Partial settlement for a fraction of the outstanding balance (often 20-50%).

Defending Against a Lawsuit

  • If sued by the MCA lender, a defense lawyer handles responding and can raise various arguments in your favor, such as:
  • Unconscionability – Seeking to invalidate the agreement by proving its costs and terms were unfair or deceptive.
  • Breach of contract by the lender – Demonstrating the MCA company violated provisions first, nullifying their ability to enforce the agreement.
  • Invalid debt purchase – Showing the plaintiff does not have legal standing to collect on the amounts claimed.
  • Usury violations – Proving the equivalent interest rates exceeded state caps or rate limits.

Key Factors in MCA Defense

As an MCA defense case proceeds, several factors often prove pivotal:

Ability to Repay

  • If it can be established the MCA provider made no effort to verify the business’s ability to repay without taking on excessive hardship, this helps demonstrate overreaching and bolsters claims of unfair practices.


  • Failure to provide clearly communicated, legally-required pricing disclosures is a prime avenue for attacking an MCA contract’s validity.

Choice of Law Clauses

  • If the agreement stipulates use of laws from a state with fewer consumer protections to govern disputes, this may be unenforceable.

Why Choose Us for MCA Defense

Here at DeLancey Street, we have successfully defended dozens of small business owners against MCA lenders’ overreaching demands and helped negotiate extraordinary debt relief. With extensive courtroom experience challenging unfair lending practices, our top-rated lawyers have the skills to protect your interests.We offer all potential clients a free consultation to discuss their situation in depth. This allows us to provide specific advice tailored to each unique case. Our firm works on a contingency basis – we only collect our fees if we secure a favorable settlement or judgment for you. Contact us today to schedule a risk-free case assessment.

Frequently Asked Questions

What are my options if I can no longer afford MCA payments?

If MCA payments are causing undue hardship, speak to your lender right away to discuss options like temporarily lowering payments. If they are uncooperative, contacting an attorney to negotiate or defend against the debt may be your best recourse.

Can an MCA lender press criminal charges against me?

While extremely rare, some predatory MCA lenders threaten business owners with criminal charges like fraud or theft to coerce repayment. These threats are almost always completely unfounded, and meant to intimidate. Let your defense lawyer respond to any such allegations.

What are the risks of stopping payments to an MCA provider?

You should not stop making payments without first seeking legal advice, as doing so likely constitutes breach of contract. This allows the lender to take various actions like suing you, interfering with bank accounts, or selling the debt to aggressive collectors. Your attorney can guide you in structuring a complete or partial payment stoppage in the safest manner possible.

About DeLancey Street

Founded in 1991 in San Francisco, DeLancey Street is not a law firm but rather an association of independent lawyers who have come together to provide effective legal representation to clients like yourself. We have extensive experience helping small businesses seek justice against predatory lenders. Our unique fee structure aligns our incentives with yours – we only get paid if you do. This motivates us to achieve the very best possible outcome in your case.


Predatory merchant cash advance loans continue to ensnare small businesses across the country. However, by understanding your rights and working with an experienced MCA defense attorney, you can fight back against harassment, negotiate reduced balances, and free yourself from crushing debt. To discuss your situation in a free consultation with our legal team, don’t hesitate to get in touch today.

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