Oklahoma MCA Defense Lawyers Business Debt Relief

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 offering a lump sum payment in exchange for a percentage of future sales. While this can help businesses cover short-term cash flow issues, MCA loans also come with dangerously high interest rates and aggressive collection tactics that can push borrowers into a debt spiral.Some of the common issues business owners face with MCA loans include:

  • Deceptively High Interest Rates – MCA loans can carry annual percentage rates ranging from 60% to as high as 350%. These rates often go undisclosed at the time of signing.
  • Difficulty Paying Back – MCA lenders take a fixed percentage of daily credit card sales, which may not align with a business’s actual ability to pay back the loan. This can drain cash flow quickly.
  • Aggressive Collections – When businesses struggle to make daily payments, MCA lenders resort to aggressive tactics like harassing phone calls, lawsuits, threats to contact customers, and attempting to access business bank accounts directly.

Facing such predatory lending practices, many business owners feel overwhelmed and unsure where to turn. However, working with an experienced MCA defense lawyer can help protect your rights as a borrower.

MCA Defense Lawyers Can Challenge Unfair Lending Practices

MCA defense lawyers and business attorneys regularly work with borrowers to fight back against predatory merchant cash advance companies. There are various legal arguments these attorneys can leverage to protect business owners, including:

  • Usury Laws – In many states, usury laws place caps on maximum interest rates lenders can charge. MCA loans often violate these laws due to rates that exceed 100-200% APR.
  • Deceptive Trade Practices – Lenders may engage in deceptive trade practices by obscuring key loan terms like interest rates and payment structures. Attorneys can leverage consumer protection laws to fight these practices.
  • Unconscionable Contracts – MCA contracts often contain unconscionable terms that unreasonably favor the lender and limit borrower rights. Attorneys may argue these contracts are invalid.
  • Harassment – Aggressive collection harassment by MCA lenders can violate state and federal debt collection laws. Attorneys send cease and desist letters or bring counterclaims to stop harassment.

By making these legal arguments, MCA defense lawyers can put pressure on lenders to settle outstanding debts for much less than claimed or even get them invalidated outright.

Debt Settlement As An Alternative Path To Resolution

Rather than entering an expensive, lengthy legal battle, many borrowers work with their defense lawyer to initiate debt settlement talks with MCA lenders. Debt settlement provides a negotiation-based approach to resolving outstanding MCA debts for less than originally owed – often 40-60% less.The debt settlement process for MCA loans typically involves:

  1. Reviewing All Loan Terms and Balances – The attorney performs a complete review of the MCA agreement to understand key terms like interest rates, payment structures, and outstanding balances. This allows for a full picture of what is owed.
  2. Halting Payments Temporarily – The business temporarily stops making daily MCA payments. This disrupts cash flow to the lender and motivates them to negotiate a settlement.
  3. Opening Settlement Negotiations – The attorney contacts the MCA company directly and makes an initial low-ball offer to settle debts at a discount (often 10-30% of balance). After some back and forth, a final discount is agreed upon.
  4. Making One Lump Sum Payment – Rather than paying the entire balance, the business makes a single discounted payment to “settle” the debt. This payment is structured to not further harm cash flow.
  5. Getting Remaining Balance Forgiven – Upon receiving the settlement payment, the MCA lender forgives any remaining unpaid balance on the debt. Formal agreements release the borrower from further collection efforts.

Debt settlement can be an appealing path for business owners because it reduces massive outstanding MCA balances down to a manageable lump sum tailored to the borrower’s budget. This prevents further damage to cash flow while ending collection harassment.

Why Hire An MCA Defense Attorney For Debt Settlement?

Pursuing debt settlement for an MCA loan without legal guidance is very risky. MCA lenders use intimidation tactics to bully business owners into accepting unfair settlement terms or continuing difficult payments. However, working with an experienced MCA defense lawyer levels the playing field.Benefits of using a lawyer for MCA debt settlement include:

  • Expert Negotiation – Attorneys regularly negotiate debt settlements from positions of strength. Their expertise allows them to secure optimal terms.
  • Oversight Of Agreement – Lawyers review settlement agreements to ensure permanent debt release and prevent hidden clauses that could enable future collections.
  • Enforcing Settlement Terms – If an MCA lender violates terms post-settlement, attorneys can quickly take legal action to protect the borrower.
  • Stop Harassment – By law, MCA companies must halt collection calls and harassment once a lawyer makes contact seeking settlement.

While debt settlement involves letting go of the full MCA balance, partnering with a skilled MCA defense lawyer maximizes the relief and savings received in the process. Their oversight and expertise empower business owners to resolve debts on favorable terms, protect their rights, and prevent trickery by lenders.

Finding The Right MCA Defense Attorney For Your Business

If you’re struggling with overwhelming MCA debts, the expert MCA defense lawyers at Delancey Street can help. Our legal team has extensive experience challenging unfair lending practices and negotiating debt relief for business owners nationwide. We offer free consultations to review your situation and provide tailored advice and legal support. Don‘t let predatory MCA companies bully you into financial ruin. Partner with our passionate attorneys today to take control of your debt and protect your business for the future.

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