IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.
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Atlanta MCA Defense Lawyers Business Debt Relief
Our website is https://www.delanceystreet.com. We are not a law firm – but we have attorneys who can help, as a part of our service.Our phone number is: 212-210-1851.Small business owners in Atlanta facing legal issues with merchant cash advances (MCAs) have options. As specialists in business debt relief, we can connect you with experienced attorneys to defend your interests. This article provides an overview of common MCA problems in Atlanta, potential defenses, and how our customized debt relief programs can help.
What is a Merchant Cash Advance?
A merchant cash advance (MCA) provides a business with immediate funding in exchange for a percentage of future credit card sales. It is not technically a loan, so MCA companies can skirt state lending laws and charge higher fees.While MCAs provide fast access to capital, they often trap businesses in expensive debt cycles with exorbitant buyout terms. Their convoluted fee structures and high rates can sink companies.
Common Legal Issues Facing Atlanta Small Businesses
MCA companies employ aggressive collections tactics that frequently cross legal lines:
- Deceptive marketing – MCA companies downplay costs and overstate potential benefits to secure sign-ups. Their opaque fee structures obscure the true cost of capital.
- Breach of contract – Vague contract language gives MCA companies leeway to alter payment processing in ways detrimental to the business. They can manipulate daily debits to maximize fees.
- Abusive collections – MCA collectors will harass business owners with threatening calls and lawsuits. They leverage legal threats to intimidate owners into accepting unfair settlements.
- Unconscionable contract terms – MCA contracts often contain one-sided and egregiously unfair provisions that shock the conscience. Courts can deem these clauses unenforceable.
- Usury violations – By claiming to purchase future receivables rather than lend money, MCA companies try to skirt state usury caps on interest rates. This legal gray area has bred litigation.
Below we detail potential defenses Atlanta small business owners can raise to contest predatory MCA tactics in court or negotiations.
4 Defenses Against Abusive MCA Companies
- Unconscionability – If an MCA contract contains grossly unfair or one-sided terms, you may argue it is an “unconscionable contract”. This makes the agreement unenforceable as a matter of public policy. Examples of unconscionable MCA terms include unreasonable default interest rates or unilateral modification clauses.
- Usury violations – Georgia usury laws cap maximum allowable interest rates on commercial loans at 16% per annum. MCA companies claim to purchase future receivables rather than lend money to evade these restrictions. However, you can argue the economic realities show it functions as a usurious loan. This would invalidate the contract and associated fees.
- Breach of contract – Vague language in MCA agreements gives companies broad discretion to alter payment processing in detrimental ways. For example, suddenly changing to daily repayment debits that maximize fees. You can argue these unilateral changes constitute a material breach of contract, releasing your business from further performance.
- Breach of good faith & fair dealing – All contracts under Georgia law contain an implied covenant of good faith and fair dealing. This requires parties to reasonably cooperate for mutual benefit, not act arbitrarily to the other’s detriment. Manipulating repayments to spike fees likely violates this covenant.
- Deceptive trade practices – Georgia’s Fair Business Practices Act bans false or deceptive advertising. MCA solicitations often misrepresent costs and overpromise benefits. This constitutes false advertising you can sue over.
How Can We Help Atlanta Small Business Owners?
As specialists in business debt relief, Delancey Street has extensive experience negotiating, settling, and restructuring MCA agreements. We leverage our expertise to protect clients and achieve fair outcomes.Rather than take a cookie-cutter approach, we customize solutions tailored to each business’s unique situation. This includes coordinating with legal counsel to assert defenses and bring counterclaims where appropriate.Our comprehensive debt relief programs are designed to:
- Permanently lower monthly payments
- Slash or eliminate fees & interest charges
- Consolidate multiple debts into one manageable payment
- Stop collections harassment and lawsuits
- Develop sustainable cash flow management strategies
We assign each client a dedicated specialist to quarterback negotiations and provide ongoing account management. Business owners enjoy complete transparency into the process while we handle the heavy lifting.
Why Work With Us?
- Results-driven – Our debt relief programs produce measurable financial benefits, with average savings of 40-60% off total balances. We don’t get paid unless we successfully lower your debt burden.
- Attorney-backed – Our in-house legal team supports negotiations and litigation where prudent. We tap our national network of commercial attorneys as needed to assert defenses in your state.
- Holistic solutions – We take a big picture approach focused on your long-term financial health, not quick fixes. This includes addressing root cash flow issues.
- Trusted reputation – As industry pioneers since 2002, we have maintained an A+ rating with the Better Business Bureau by doing right by small businesses.
- Personal service – You work directly with a knowledgeable specialist invested in your success. We are large enough to deliver results yet small enough to care.
Reach Out for a Free Consultation
We invite Atlanta small business owners struggling with predatory MCA debt to schedule a free consultation. There is absolutely no cost or obligation to discuss your situation and learn about customized relief options.Our friendly experts make it simple to determine if our programs offer the help you need. We welcome the opportunity to protect Atlanta businesses from abusive MCA tactics and get you back to growth mode.
Key Takeaways
- Merchant cash advances (MCAs) provide quick financing but often entrap small businesses in debt cycles with exorbitant fees and rates.
- Aggressive MCA collectors frequently overstep legal boundaries with abusive tactics.
- Atlanta business owners can assert defenses based on unconscionability, usury violations, breach of contract, and deceptive practices.
- Specialists like Delancey Street leverage legal arguments and negotiating leverage to settle, restructure or dismiss MCA debts.
- Our customized programs deliver average savings of 40-60% through consolidated payments, reduced balances, slashed fees and stopped collections.
