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Plano MCA Defense Lawyers Business Debt Relief

February 24, 20249 min read

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

MCA Defense Lawyers Provide Critical Business Debt Relief

Merchant cash advance (MCA) loans have become an increasingly popular way for small businesses to access quick capital. However, predatory MCA companies often fail to properly disclose terms and charge exorbitant interest rates that can leave business owners drowning in debt. If you took out an MCA loan for your business and are now facing collection lawsuits or threats, specialized legal help can provide critical relief.

How MCA Loans Work

Merchant cash advance loans provide business owners with a lump sum of capital in exchange for a percentage of future credit card and debit card sales. Repayment terms usually last around 9-12 months as the MCA company collects daily payments by making automatic withdrawals from the business’s checking account.Unlike traditional small business loans, MCA loans do not have a fixed interest rate or payment schedule. The total cost of the loan depends on several factors:

  • The funding amount
  • The fixed daily payment deducted by the MCA company
  • How long it takes to fully repay the loan

This open-ended structure allows predatory MCA companies to charge exceedingly high interest rates, often equivalent to 60-400% APR when calculated over the full repayment period.

Common MCA Company Abuses

While MCA loans can provide legitimate financing to small business owners who cannot qualify for traditional funding, many MCA companies engage in predatory and even illegal practices, such as:

  • Failing to properly disclose interest rates and repayment terms
  • Charging rates above legal limits set by state laws
  • Making unauthorized or excessively high daily withdrawals
  • Threatening business owners with lawsuits and criminal charges
  • Refusing to provide detailed account statements

This kind of abuse pushes desperate business owners deeper into debt and destroys companies that could otherwise recover with temporary relief.

Why You Need an MCA Defense Attorney

Fighting back against MCA harassment and lawsuits requires legal expertise. An experienced MCA defense lawyer can:

  • Negotiate Settlements: Well-versed in the tactics of MCA companies, defense lawyers negotiate reduced payoff amounts and affordable long-term payment plans. Settlements may discharge all or part of the debt.
  • Defend Against Lawsuits: MCA companies routinely file lawsuits against business owners to intimidate them into paying. Your lawyer will build strong legal defenses to have cases dismissed or debts invalidated.
  • Stop Harassment and Unauthorized Charges: Your lawyer sends formal notices requiring MCA companies to cease illegal practices, unauthorized bank withdrawals, and threats. Violations may nullify the debt or qualify you for damages.
  • Recover Garnished Funds: If an MCA company already won a judgement and collected funds from your bank account or merchant processor, your lawyer can fight to recover those assets.

Key Defenses Against MCA Companies

MCA defense lawyers draw on several legal arguments to invalidate debts and stop lawsuits, including:

Unconscionability

Because MCA loans have no fixed repayment schedule, interest rates often far exceed state usury laws when calculated over the full payoff period. This may render the contract unenforceable.

See also  Alabama MCA Defense Lawyers Business Debt Relief

RICO Violations

The MCA business model inherently qualifies as a “racket” under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. This allows treble financial damages against predatory companies.

Invalid Arbitration Clause

Most MCA contracts include binding arbitration clauses to block lawsuits. However, many provisions are legally invalid, allowing you to sue in court.

Deceptive Practices

Evidence proving an MCA company concealed terms, misled the borrower, or violated consumer protection laws can invalidate the agreement.

Our Top MCA Defense Attorneys

The MCA defense lawyers at Delancey Street have extensive experience fighting back against lawsuit threats and navigating complex settlement negotiations. We leverage our insider knowledge of MCA company practices to expose abuses and build strong legal arguments on your behalf.Our track record includes dozens of favorable settlements and dismissed lawsuits against top MCA firms like Yellowstone Capital, Advance Business Capital, Everest Business Funding, and more.

The Debt Relief Process

When you partner with our MCA defense firm, here is what you can expect:

1. Case Review

We thoroughly analyze your MCA agreement, account statements, and details of the debt to identify potential defenses, rights violations, and settlement leverage points.

2. Demand Letters

We send the MCA company formal legal notices demanding they cease unlawful collection activities. This may prompt favorable settlements.

3. Negotiations

Leveraging our experience and your legal defenses, we negotiate affordable long-term payment plans or discounted lump-sum settlements.

4. Lawsuits

If necessary, we defend against any lawsuits filed by MCA companies. We may also file affirmative lawsuits to nullify debts or recover damages.

See also  Los Angeles Merchant Cash Advance Lawyers and Business Debt Relief

5. Ongoing Support

As needed, we assist with enforcing settlement terms, monitoring account statements, and ensuring continued compliance.Our attorneys provide transparent pricing options including contingency fees allowing you to retain our services at no upfront cost. There are always options to resolve MCA debts—let our experienced team help you move forward.

Frequently Asked Questions

Still have more questions about MCA loans and how defense lawyers can help? Here are answers to some of our most common inquiries:

How long do MCA companies have to sue for repayment?

  • MCA companies typically have 4 to 6 years from loan origination to file lawsuits in civil court per state statutes of limitations. However, different rules may apply if they already obtained arbitration judgements.

Can MCA loans be discharged through bankruptcy?

  • Yes, both Chapter 7 and Chapter 13 bankruptcies can discharge MCA loan debts. However, bankruptcy also liquidates your business assets. Debt settlement and legal defenses are often better options.

If I stop making payments, what happens?

  • MCA companies may assign debts to aggressive collection agencies and eventually file lawsuits or pursue arbitration judgements. Some may also try illegal tactics like harassing calls or unlawfully withdrawing funds. Get legal help responding.

How can lawyers help if the MCA already won a judgement?

  • If an MCA company has a judgement against your business, defense lawyers can file appeals and lawsuits to overturn decisions, recover garnished money, and stop ongoing collection activities. Acting quickly is essential.

What proof is needed to show MCA wrongdoing?

  • Save all written contracts, recordings of verbal agreements, account statements, call/email records, and other documentation. This helps prove abusive or unlawful MCA behavior.

About Delancey Street

Founded in 2022 by a team of seasoned attorneys, Delancey Street leverages decades of combined experience to assist small business owners facing MCA debt lawsuits and harassment. Beyond our MCA practice, we also provide defense services related to business fraud claims, breach of contract lawsuits, employment disputes, and more.

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

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