Raleigh MCA Defense Lawyers Offer Hope for Small Businesses Struggling with Crippling MCA Debt
Small business owners work hard to build their dreams. Long hours, sleepless nights, and incredible personal sacrifice to make the business work. So when cash flow gets tight, many turn to merchant cash advances (MCAs) thinking it will give them some breathing room.But for too many, MCA debt becomes a nightmare that threatens to destroy everything they’ve worked for. Exorbitant interest rates and unfair terms trap owners in debt they can’t escape. The funders file lawsuits, freeze bank accounts, and seem determined to squeeze every last penny from the merchant no matter the consequences.Fortunately, Raleigh MCA defense lawyers can help. Attorneys with experience fighting MCA funders level the playing field and give business owners a fighting chance to reduce or eliminate their debt burden.
How Raleigh MCA Defense Lawyers Can Help
Raleigh MCA defense lawyers have a deep understanding of MCA agreements and the tactics funders use against merchants. Their experience defending hundreds of cases allows them to quickly assess the situation and determine the best strategies for that particular business.Some of the ways an experienced Raleigh MCA defense lawyer can help include:
- Negotiating Lower Payments – The lawyer contacts the MCA funder and works to get payments reduced to affordable levels. This stops the bleeding and gives the business room to rebuild revenues.
- Settling Debt for Pennies on the Dollar – When a business just can’t afford the payments anymore, the lawyer negotiates a settlement for a fraction of what’s owed. This wipes the slate clean so the owner can move forward.
- Defending Against Lawsuits – When an MCA funder sues, the lawyer handles the entire litigation process. This takes the stress off the business owner so they can focus on operations.
- Vacating Judgments – If a funder already has a judgment against the merchant, the lawyer can file emergency motions to get it removed so accounts can be unfrozen.
- Recovering Funds Lost to Fraud – When a funder has defrauded the merchant or breached the agreement, the lawyer pursues legal action to recoup those losses.
The bottom line is that an experienced Raleigh MCA defense lawyer levels the playing field. They know the funders’ tricks and tactics so they can put up a vigorous fight for the merchant.Most lawyers charge hourly fees ranging from $200 to $500 per hour. But many Raleigh MCA defense lawyers work on a contingency basis, collecting their fee as a percentage of savings from reduced or settled debt. This means no upfront costs to the struggling business owner.
Know Your Rights – MCA Agreements Frequently Violate North Carolina Law
Merchant cash advance agreements often contain terms that violate North Carolina lending laws. But most small business owners don’t realize their rights have been infringed upon.For example, state law caps interest rates on loans less than $25,000 at 30% APR. It’s not uncommon for MCA funders to charge rates exceeding 100% or more. Any rate over the 30% cap can potentially be reduced by legal action.The law also requires lenders to fully disclose all terms and conditions of an agreement. Hidden fees and vague language don’t cut it. Failure to clearly disclose all costs may provide grounds to invalidate the agreement.Other aspects of MCA contracts that frequently cross legal boundaries include:
- Deceptive Marketing – MCA companies often misrepresent terms, fail to disclose key details, or use high-pressure tactics. This may constitute fraud.
- Unfair Repayment Processes – Agreements often give funders broad, unchecked abilities to raid merchant accounts. Freezing accounts without notice and double debiting are common complaints.
- Abusive Collection Practices – Harassing communications, improper threats to seize assets or contact customers, and other egregious collection actions violate federal and North Carolina debt collection laws.
The reality is that many MCA agreements trample over merchant rights in their quest to maximize profits. But the complexity of these contracts and aggressive legal posturing by funders prevent most owners from pursuing legitimate legal defenses.This is why partnering with an experienced Raleigh MCA defense lawyer can be such an invaluable ally. They understand where funders cross legal lines and how to leverage those violations to the merchant‘s advantage.
